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Tuesday, 26 March 2013
Transeuro Energy confirms first draw down on Yorkville funding
Transeuro Energy (CVE:TSU) has confirmed its first draw down on its funding arrangement with Yorkville Advisors’ Global Master fund.
The facility was arranged in February and Transeuro has now confirmed that it is initially issuing 7mln new shares to Yorkville at a price of 5 Canadian cents each. In total it will raise around C$350,000 (NOK 2mln) from this first draw down.
The arrangement with Yorkville will allow Transeuro to issue more shares, up to a value of NOK100mln (approximately C$17.4mln), over a three year period.
It is expected that further shares will be issued by Transeuro to raise more of this available capital on an ‘as needed’ basis. The company says this will support development of its existing assets and implement its strategic plan.
Meanwhile, it also says that project specific financing and other funding activities will also be pursed as required.
"The share purchase agreement (SPA) is considered an efficient tool for raising smaller amounts of money to support the company's activities, particularly at higher share prices and larger trading volumes,” said chairman Aage Thoen.
“The SPA and other funding activities will be used to support the company’s strategy of pursuing new oil projects that can deliver short term oil revenues and cash flow.
“The relatively small volume of shares issued and the extended periods of time for each issuance are not expected to creating undue downward pressure on the share price."