Adelaide Energy Limited (ASX:ADE) Non-Renounceable Rights Issue
Adelaide, April 13, 2010 AEST (ABN Newswire) - Directors of Adelaide Energy Limited (
ASX:ADE) are pleased to offer you the opportunity to participate in the pro-rata non-renounceable rights issue in Adelaide Energy which was announced by the Company on Tuesday 13 April 2010 (the Rights Issue).
Recently, the Company announced a placement of ordinary shares at 15 cents per share to sophisticated investors to raise A$1.5 million. The Directors now wish to provide the opportunity for eligible shareholders to invest under the Rights Issue. Each shareholder eligible to participate in the Rights Issue will be entitled to subscribe for 1 New Share in the capital of the Company for every 4 existing ordinary shares registered in their name at 7.00 pm ACST on Thursday 22 April 2010 (the Record Date).
The 1 for 4 pro-rata non-renounceable rights issue will raise approximately A$7.8 million (before costs) through the issue of up to 52,079,090 new fully paid ordinary shares (New Shares) (subject to the rounding up of entitlements and the issue of any further Shares pursuant to the exercise of any options prior to the Record Date).
The New Shares will be issued at a cost of 15 cents per share, which represents a 20% discount to the Company's five day Volume Weighted Average Price and a 14% discount to the last sale price of 17.5 cents recorded on ASX prior to the date of the announcement of the Rights Issue.
Shareholders wishing to take up more than their pro-rata allocation of shares may do so by applying for Shortfall Shares in accordance with the instructions set out in the Entitlement and Acceptance Form. Allocation of any Shortfall Shares remains at the discretion of the Board.
The net proceeds from the Rights Issue will be used for the purposes of funding:
- the acquisition of various oil and gas properties that were announced by the Company to the market in January;
- drilling costs associated with the Company's ongoing Otway Basin exploration program;
- the accommodation of additional costs associated with drilling activities and pipeline installation in the Company's Otway Petroleum Project.
- the Company's share of the drilling costs of the forthcoming "Pirie-1" exploration well in PEL 105 in the Cooper Basin;
- ongoing capital expenditure on the development of the Company's production assets in the Otway Basin; and,
- working capital requirements.
The Directors reserve the right to place any Shortfall.
The Company will apply to ASX for Official Quotation of the New Shares.
Please seek independent investment advice from your stockbroker, accountant or other professional advisor before making any investment decision.
The Board of Adelaide Energy looks forward to your participation in the Rights Issue.
For the complete Non-Renounceable Rights Issue announcement, please click the link below:
http://www.abnnewswire.net/media/en/docs/62620-ASX-ADE-177612.pdf
Contact
Neville Martin
Chairman
Adelaide Energy Limited
Tel: +61-8-8228-5207
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