Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF). has announced the admission of its entire issued and to be issued share capital to trading on the AIM market of the London Stock Exchange PLC and, in conjunction, a fundraising of approximately GBP8.8 million (C$15.0 million).
Admission took place on AIM from today, Monday, October 25, 2021, and dealings in its common shares of nil par value commenced under the TIDM ‘AXL’ and ISIN code CA04274P1053.
In a statement, Marshall Abbott, CEO of Arrow, said: “We are thrilled to have completed our London dual listing having received such strong support and interest in our story from new and existing shareholders. Our offering to London audiences is unique. We have multiple, near-term value catalysts in a jurisdiction which is extremely supportive, under-explored and has existing infrastructure already in place.”
“Our portfolio contains both development wells, providing low-risk immediately cash-generative growth opportunities, but also higher risk exploration opportunities, which we look forward to drilling shortly. With the next well at Rio Cravo Este expected to spud in the near-term, this is an exciting time for Arrow and its shareholders,” Marshall added.
READ: Arrow Exploration reports second-quarter financials showing positive cash position of $4.6 million as of June 30, 2021
The fundraising saw a placing and subscription of 140,949,545 new Arrow common shares with new and existing investors, and the company’s executive management at an issue price of 6.25p (C$0.106125) each. Arrow’s executive management invested approximately GBP0.83 million (C$1.41 million) in the fundraising
Investors in the fundraising will also receive one warrant for every two shares, exercisable at 9p (C$0.15282) per new common share for 24 months from AIM admission At the fundraising price, the company’s market capitalisation will be GBP13.1 million (C$22.3 million)
The company said the net proceeds of the tundraising – together with its existing funds, if required – are expected to be used to drill two wells at Rio Cravo Este, commencing by the end of 2021, and will also be deployed in drilling the Carrizales Norte-1 exploration well. Additionally, the company will deploy funds to repay approximately US$3.15 million of a promissory note the company has with Canacol Energy Ltd (TSX:CNE).
In connection with the fundraising, ?Canacol purchased 36,715,205 shares – representing 17.5% of Arrow’s issued and ?outstanding common shares – and ?18,357,602? warrants. Prior to the acquisition, Canacol held 5,000,000 Arrow common shares.
Canacol now controls 41,715,205 Arrow common shares, or approximately 19.9% of the total ?issued and outstanding common shares, and 18,357,602 warrants. Assuming the exercise of ?the earrants, it would own or control 60,072,807 or approximately 26.6% of the total ?issued and outstanding Arrow common shares on a partially diluted basis for Canacol only.? Canacol said it acquired the securities for investment purposes and, presently, has no intention of ?acquiring any further securities of Arrow though it may acquire ownership of or control over ?further securities of Arrow in the future depending upon market circumstances.
Canadian non-brokered Private Placement
In addition to the AIM float-related fundraising, the company said it intends to raise up to an additional C$0.5 million by way of a non-brokered private placement in Canada. The private placement is expected to be conducted at the same price as the fundraising (and in any event at a price not less than the fundraising price). The private placement is expected to close in late October 2021 or early November.
The net proceeds from the private placement will also be applied towards the company’s work programme.
The company’s common shares will continue to trade on the TSX Venture Exchange (TSX-V).
Arden is acting as nominated adviser, broker and bookrunner to the company in connection with the fundraising and AIM admission. Arden has received GBP459,260 (C$779,823) in fees in connection with the fundraising.
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