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The market capitalization of Chariot Limited has gained $7.33 million (£5.29 million) after raising $16.5 million (£11.7 million) by way of successfully placing and issuing new ordinary shares.
Chariot is an Africa-focused energy company co-founded by Adonis Pouroulis.
The transitional energy company raised gross proceeds of $16.5 million (£11.7 million) through the placement and subscription of 212,553,929 new shares in line with the terms of its new Moroccan license for the Rissana offshore field, which it was recently awarded. Chariot announced the placement in May.
In line with the management’s fundraising plans, the new ordinary shares saw the share price of Chariot on the London Stock Exchange decline from $0.108 (£0.0781) on May 21 before the announcement was made public to $0.0755 (£0.0560).
This translates to a 28-percent decline in the company’s share price.
As of press time, 9:00 am (UTC+1), July 6, Chariot’s shares on the LSE were trading at $0.0755 (£0.0560), or 35-percent lower than its opening price for the year.
Despite the decrease in the company’s share price, Chariot’s market capitalization managed to increase by $7.33 million (£5.29 million).
The $7.33-million increase in market capitalization came upon admitting 238,512,856 new ordinary shares on June 24 and a subsequent issue of 9,196,926 shares in line with a share-purchase agreement signed by Chariot after its acquisition of the Africa Energy Management Platform.
The admission of the new shares led the number of the company’s total outstanding shares to increase from 388,367,946 ordinary shares as of May 21 to 636,077,728 as of press time, 9:00 am (UTC+1), July 6.
While its current outstanding shares amount to 636,077,728 ordinary shares, its market capitalization is $49.36 million (£35.62 million).
At the current valuation, the company is valued at $7.33 million (£5.29 million), higher than its valuation of $42.03 million (£30.33 million) before it announced plans to raise additional funds on May 21.
Pouroulis is a Greek investor with core interests in solid minerals and oil and gas in Africa. He has worked in the sector for more than 25 years and has been influential in the founding, financing and growth of several companies, including Petra Diamonds, which was founded in 1997.
The magnate is a founding member of Chariot and its Namibian subsidiary, Enigma.
