After a good day yesterday, Xcite Energy shares were languishing for most of the day, until an RNS late in the afternoon that the third and final stage of its private placing with Global Resource Funding Partners LLC had been completed. The shares closed up 1p at 85p.
The third stage, issued 12,000,000 units (share plus warrant) at a price of £0.69552 per Unit. Each Unit comprises one ordinary share and one-half of one ordinary share purchase warrant. Each Warrant issued for the third stage of the Placing is exercisable for one additional Share at 120% of the Unit price per share for three years from the date of issue. The exercise price of the Warrants issued in the third stage of the Placing is £0.8346.
The second stage of the placing was completed on the 19 July 2012 with 12.5 million units at £0.66626 per Unit (warrants at £0.7995) and the first stage in June with 8 million units at £0.8044 per unit (warrants at £0.97). Making a total of 32.5 million units.
After sitting in the high 70’s range for most of the last few weeks, investors are hoping that news of the final tranche of the Global private placement means that the hand brake on the price has finally been released. Suspicions abound that Global has kept the price contained to maximise the potential of its warrants.
With the last significant spike in the share price preceding the upgrade in reserves to 116 million barrels in February where it went from 90p to 165p, £1 plus has been elusive of late with millions of shares hitting the market through placements. Shares in issue have roughly doubled to close to 300 million in the last 2 years. The last operational update from the company’s North Sea Bentley field was on August 3rd so it is not inconceivable that the final placing was wrapped up before the release of further positive operational news on the extended well test.
All eyes on a market pleasing RNS this week and a rebound in Xcite’s battered share price!