News Column

Africa Oilfield Logistics Raises GBP7.0 Million For Ardan Growth Plans

July 17, 2014

Samuel Agini



LONDON (Alliance News) - Africa Oilfield Logistics Ltd Thursday said it has conditionally raised about GBP7.0 million before expenses in a share issue, with the net proceeds designated alongside existing cash resources for the growth initiatives of its main investment, Ardan Risk & Support Services.



In a statement, the AIM-listed Africa-focused support services and logistics company said it raised the funds by issuing 77.8 million new shares at 9.0 pence each. Africa Oilfield Logistics said that about USD3.5 million will go towards its expanded civil engineering team; about USD2.5 million for capital expenditure associated with the construction of a logistics hub in Kenya to centralise field operations; about USD1.5 million to establish a regional logistics operation in Djibouti; and for working capital and general corporate purposes, including working capital in support of any future contract awards. It said a number of tender processes are ongoing.



"With this cash injection of USD12.0 million, we will be well capitalised to implement our growth strategy and build on our support services platform in Africa, which already boasts an international client list," Chief Executive Carl Esprey said in a statement.



"We have made excellent progress on the ground in structuring our investments to deliver the support services and logistics required by operators in the region. The recent revenue figures from Ardan underscore our successes and highlight the opportunity available to us, something that has been recognised both by new and existing shareholders and reflected in the appetite for the fundraising," Esprey added.



The fundraising remains conditional upon shareholder approval at an August 11 general meeting.



Africa Oilfield Logistics shares were Thursday quoted down 1.2% at 10.00 pence.

Director Participation in Fundraising

As part of the fundraising, some directors of the company, including Esprey, have committed to subscribe for new shares as follows:

 

Director

Existing shareholding interest

New Shares subscribed for

Shareholding interest on completion of the Fundraising

Shareholding interest as % of enlarged issued share capital

 

Carl Esprey

-

277,778

277,778

0.07

Andrew Groves

5,000,000

277,778

5,277,778

1.34

Phil Edmonds *

5,000,000

277,778

5,277,778

1.34

Ian Mann **

9,855,173

277,778

10,132,951

2.57

*subscription to be undertaken by a trust of which Edmonds is a trustee.

** 4,855,173 of the shares in which Mann is interested are held by Meridian Global Energy and Resources Fund Ltd a company of which Mr Mann is a director.








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Source: Alliance News


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