Trinity Exploration & Production (AIM: TRIN) has conditionally raised $20m to accelerate growth and fully repay all outstanding debt and Loan Notes. As well as attracting new institutional investment via an oversubscribed placing, Directors and senior management participated in the fundraise by contributing in aggregate $3m. As such, the Board remains fully aligned with investors and will have a 22.7% stake in the Company post completion of the raise. Certain holders of the Loan Notes (including Directors) have opted to remain invested in the Company by converting the value of some or all of their Loan Notes. The Company is also providing an opportunity for qualifying retail investors to participate through an open offer.
In addition to enabling the Company to repay in full the outstanding debt to the BIR and the MEEI as well as all outstanding amounts under the Loan Notes issued in January 2017, the proceeds will enable the Company to rapidly accelerate its onshore drilling programme and production, with a planned 8-10 wells per year, as it builds on the solid foundations created since restructuring. As such, the Company will be in a position to generate free cash flow and self-fund new onshore drilling activity from 2020 onward while continuing double-digit annual production growth as it develops its low risk onshore assets.
In addition to accelerating the onshore programme, the Fundraising will also provide Trinity with the necessary capital resources to allow revision of the Trintes drilling plan and the TGAL Field Development Plan with the Company's East Coast Assets offering a significant opportunity to deliver a step-change in production levels in the medium term.
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