AusTex Oil to raise A$5 million through underwritten Rights Issue to Shareholders

AusTex Oil (ASX: AOK) has announced a fully underwritten Rights Issue to Shareholders to raise approximately $5 million after costs (Offer).

The Offer will allow shareholders to subscribe for one share (New Share) for every five shares held at 5pm on Monday, 19 April, 2010 at the issue price of $0.16 per New Share together with one attaching option (New Option) for every two New Shares subscribed for.

The New Options will be exercisable at $0.25 each on or before 1 December 2011. The company will be seeking quotation of the New Options on the Australian Securities Exchange. Other terms attaching to the New Options will be set out in a prospectus to be issued by the company in relation to the Offer.

Pursuant to the Rights Issue the company will issue up to 33,885,000 New Shares and 16,942,500 New Options in the company, to raise up to $5,421,600 (excluding any proceeds upon exercise of any of the New Options) before costs.

As part of Novus Capital Limited’s (Novus) ongoing relationship with the company as Broker and Corporate Adviser, Novus has agreed to fully underwrite the Rights Issue, subject to commercial terms and conditions to be announced.

The proceeds of the Rights Issue will be used to predominately fund the ongoing development drilling and exploration of the company’s oil and gas interests in Kansas and Oklahoma, for working capital purposes and for the costs of the Offer.

http://www.proactiveinvestors.com.au/companies/news/5925/austex-oil-to-raise-a5-million-through-underwritten-rights-issue-to-shareholders-5925.html