ACORN PETROLEUM TO RAISE NGN20BN

Shareholders of Acorn Petroleum Plc have endorsed the management’s proposal to raise additional N20bn through either public offering, private placement or any other instrument.

The shareholders gave the approval in Lagos on Tuesday, November 03, 2009, during an Extraordinary General Meeting.

Addressing the shareholders, the chairman of the company, Mr. Kolapo Lawson, said “the fund would be raised through the issuance of shares, convertible or non-convertible loans, notes, bonds, options and any other instrument, in such tranches, series or proportions, at such coupon or interest rates, within such maturity periods or on such other terms as the board of directors may at its discretion determine, subject to obtaining the approvals of the relevant regulatory authorities in accordance with applicable laws.”

He said in furtherance of the capital raising exercise, the board of directors would raise additional N20bn through the issuance of ordinary shares at N9 per share, ranking pari passu in all respects with the existing or ordinary shares of the company and through the issuance of not less than 1,000 bonds of at least $10,000, each convertible into ordinary shares of the company at the price of not less than N8 per share.

Also speaking, the Managing Director of the company, Mr. Doyin Adeyinka, said the fund would be deployed towards expansion of infrastructure; capacity building as well as strategic reserve to enable the company competes well in the industry.