Beacon Energy shares fell in early trade on Friday after the junior energy company completed a £4.3m oversubscribed placing to fund their German exploration programme.
Beacon Energy enjoyed strong demand for the issue and was able to secure funds at a marginal discount. The placing was completed at 15p – a 16% discount to the prior closing price.
The placing was met by demand from both institutional and retail investors.
“We are delighted to have received such strong support in this process from both existing and new investors. The Fundraise was significantly oversubscribed, bringing a number of new high quality institutional investors onto the shareholder register – a testament to the quality of the Company’s asset base and the scope for material value creation,” said Larry Bottomley, CEO of Beacon Energy.
“The fundraise provides welcome additional working capital to support bringing the SCHB-2(2.) well into commercial production. We would like to thank our new and existing investors for their support and look forward to providing further updates on our operational progress in due course.”