Armstrong Teasdale Advises AIM-Quoted Baron Oil Plc on Equity Fundraising
Armstrong Teasdale’s U.K. Capital Markets team recently advised its long-standing client Baron Oil Plc (Baron Oil) on its equity fundraising of £5 million (before expenses) by way of a placing and subscription at a price of 0.12 pence per new Ordinary Share (Issue Price). Allenby Capital Limited acted as broker in connection with the placing, which was oversubscribed.
In addition, the AT team advised Baron Oil in connection with a separate retail offer launched to existing shareholders through the REX trading platform (Rex Retail Offer) operated by Peel Hunt. This gave existing shareholders an opportunity to participate in the fundraise at the issue price. The Rex Retail Offer raised approximately £360,000 (before expenses).
The aggregate net proceeds of the fundraising will be applied toward continued activities in relation to the Company’s operations in Timor-Leste, namely the TL-SO-19-16 PSC (Chuditch) project, including the finalisation of interpretation of reprocessed 3D and 2D seismic data and the Company’s U.K. P2478 project in the Inner Moray Firth. In addition, Baron Oil will apply some of the net proceeds toward the evaluation of potential new ventures.
Joan Yu, Head of U.K. Capital Markets at Armstrong Teasdale, commented:
“We are delighted with Baron Oil’s successful fundraising especially given current market conditions. We look forward to an exciting year for Baron in 2023.”
Yu led the transaction assisted by Armstrong Teasdale Solicitor Cameron Sutton (qualified in Western Australia) and Paralegal Zoe Stewart.
Baron CEO Andy Yeo commented:
"2023 will be an important year for Baron. The oversubscribed Placing provides us with the necessary funds to maximise the chances of delivering funding partners for drilling campaigns on our Chuditch and Dunrobin assets. It was a pleasure to work with our longstanding legal advisers at Armstrong Teasdale on this transaction."