New World Oil and Gas (LON:NEW) is to offer shareholders an alternative to significant dilution of their interest with an open offer to raise £1.5mln.
The oil and gas explorer recently agreed to raise the money through a placing at 0.055p, a substantial discount to the current share price of 0.265p.
Current investors would see their stake reduced to 20.5% if the placing was approved at an EGM on 19 May.
Today, it said that due to the interest from shareholders, it would put together an open offer as alternative way to raise the cash.
If shareholders vote against the placing, Cornhill Capital, which arranged it, will instead underwrite an open offer up to at least to £1.5mln with a long-stop date of 30 June.
Only those on the register on 17 May will be allowed to vote at the EGM, said New World.
The oil group has licences offshore Denmark and in Belize and expects to publish an updated competent persons’ report for the Danish licences in the current quarter.