News Column

TXO Shares Up As Investee Company Raises Funds Ahead Of Planned IPO

June 16, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Shares in investment company TXO PLC jumped 35% Monday after it announced that its investee company, Athabasca Resources Ltd, has raised GBP305,000 and appointed advisers ahead of its proposed initial public offering on AIM in September.

The company said that the GBP305,000 Athabasca had raised through a private placement was sufficient to cover the deposit for its farm-in agreement for 50% of four leases with Nordic Petroleum AS, as well as the initial costs of its AIM admission.

TXO said the implied valuation of the company at the price of the placement is GBP1.9 million.

The four leases covered by the farm-in agreement cover 7,936 hectares in Alberta, Canada, and are estimated to contain 240 million barrels of oil.

Following the completion of the planned IPO, Athabasca and Nordic intend to carry out an appraisal programme over the leases in late 2014.

TXO has a 18.8% interest in the company, reduced through dilution from 20% at the private placement.

"The recent placement was done at a significant premium to our earlier investment, and we would expect a further increase in valuation on admission," said TXO Chairman and Chief Executive Tim Baldwin in a statement.

Shares in TXO were trading up 35% at 0.269 pence Monday morning.

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Source: Alliance News

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