Corcel PLC has successfully completed an equity placing, raising a total of 1,299,750 at a price of 0.005 per share, with a significant further investment from the Company's current majority shareholder, Extraction Srl. The fundraising includes a follow-on investment of 500,000 by Extraction Srl and Corcel Director, Geraldine Geraldo, as well as several additional institutional investors. The funds will primarily be used to finance the company's ongoing operations in Angola.
The equity raise involves the issuance of 259,950,000 new ordinary shares at a price of 0.005 per share, cornerstoned by Extraction Srl and supported by Geraldine Geraldo. Investors will also receive 259,950,000 warrants enabling the purchase of new ordinary shares at a price of 0.01 per share for a period of twenty-four months. The company has agreed on a staged settlement timeline with investors, with Tranche I to be settled immediately and Tranche II following a forthcoming General Meeting.
The fundraising will result in the issuance of 259,950,000 new ordinary shares and 259,950,000 warrants, with a circular to convene the General Meeting to propose resolutions for the issuance of the remaining shares and warrants. The company has also ceased discussions regarding further drawdowns of convertible loan notes and acknowledged the full repayment and termination of the outstanding loan facility.
Extraction Srl's and Geraldine Geraldo's participation in the placing are considered related party transactions, and the terms of the transaction have been deemed fair and reasonable by the Directors of the Company independent of the transaction. The first tranche of shares is expected to be admitted to trading on AIM on or around 17 April 2024, resulting in a total issued share capital of 2,034,744,153 Ordinary Shares, with one voting right per share.