Near term Italian gas producer Po Valley Energy (ASX: PVE) has raised $8.5 million in a placement to sophisticated investors at $1.55 per share.
Last sale price was $1.55. The placement issued 5.5 million shares to professional investors and was oversubscribed. A share purchase plan (SPP) will be offered to shareholders at the same issue price.
Michael Masterman chief executive officer of Po Valley said “this is a prudent measure by us to strengthen our balance sheet and working capital position prior to commencing in October commissioning at the Castello gas field.”
Commissioning will commence in October of production from Po Valley’s Castello gas field east of Milan in northern Italy and its Sillaro field east of Bologna also in northern Italy, from January next year.
Both fields are 100%-owned by Po Valley. The oversubscribed placement was completed by Sydney-based Petra Capital.
Masterman said “the placement will also provide greater flexibility to pursue expansion options.”
The placement at A$1.55 per share – representing a 3% discount to the Company’s closing price of A$1.60 per share on the ASX on 25 September 2009.
The placement will take the number of Po Valley ordinary shares on issue to 108.9 million shares.