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Ascent Resources PLC raises £500,000 through online investment platform

Published: 19:56 07 Apr 2016 AEST

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The funds should give the company time to receive the final outcome of its IPPC Permit

Ascent Resources Plc (LON:AST) has raised £500,000 through a placing on online investment platform Primarybid.com.

The company’s placing of 35.7mln shares raised cash to fund its working capital until the end of the second quarter.

Colin Hutchinson, chief executive of Ascent said using PrimaryBid “provided us with a level of awareness and knowledge of investors’ appetite for our primary equity which is hard to come by in the traditional fund raising process.”

Dave Mutton, chief operating officer of PrimaryBid said he expects more companies to follow suit, with “significant and exciting demand” building on the platform.

The funds should give the company time to receive the final outcome of its IPPC Permit – expected by the end of the second quarter – though at this stage there is no guarantee that the court will award in Ascent’s favour.

The company also told investors that it continues negotiations around an alternative route to first gas, which is also expected in this period.

Ascent added that it has received exercise notices to convert around £80,000 worth of loan notes and £10,000 in interest into 9.1mln shares.

The fundraising follows last week’s announcement that Cadogan Petroleum PLC (LON:CAD) is no longer interested in an approach for Ascent, after retail investor hubris sent shares rocketing to a price too rich for Cadogan’s blood.

Ascent’s AIM quoted shares rose 658% after Cadogan’s approach was announced, but have dropped off since.

Shares are still 50% higher on the year to date but have lost 70% from its peak and were a further 15% down on Thursday to 1.55p. 

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