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LONDON - Chariot Limited (AIM:CHAR), an Africa-focused transitional energy company, has announced a fundraising campaign aimed at raising approximately $6.5 million. The company plans to issue new shares through a combination of a placing, subscription, and open offer to support its business ventures in wind generation, gas, and new upstream assets.
The fundraising, which is not underwritten, involves an accelerated bookbuild at an issue price of 1.4 pence per share. The bookbuild will close at the discretion of the joint bookrunners, Stifel Nicolaus Europe Limited and Hannam & Partners, with results to be announced shortly after.
Chariot’s CEO, Adonis Pouroulis, commented on the initiative, highlighting the company’s recent progress and the need to demerge its Renewable Power division to realize its value independently from the upstream oil and gas business. Pouroulis himself intends to subscribe for approximately $0.9 million worth of new shares.
The company expects to issue around 291 million new ordinary shares for the placing and subscription and up to 52 million additional shares for the open offer, which allows qualifying shareholders to participate. The open offer is structured to provide one new share for every 23 existing shares held by investors.
The fundraising is contingent on shareholder approval at a general meeting, with full details to be provided in a forthcoming circular, including the open offer and proxy forms. The new shares will rank equally with existing ordinary shares upon admission to trading on AIM.
The issue price reflects a modest discount of approximately 3.6% compared to the closing mid-market price on the day preceding the announcement. The new shares are expected to represent around 29% of the company’s issued share capital prior to the fundraising if fully allocated.
This financial move is based on a press release statement and aims to bolster Chariot’s balance sheet, facilitating the execution of its updated strategy and enabling the growth of its distinct business segments.
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