Norway’s Golden Energy Offshore Services (GEOS) has initiated a private placement of new ordinary shares. The company said it would sell up to 5.5m shares in the market, and the gross proceeds will depend on the sale price achieved.
GEOS will source the offer shares through share lending arrangements with its existing shareholders and has struck a deal with Golden Energy Offshore Management, Golden Energy Offshore and Per Ivar Fagervoll, which will enable immediate trading of the offer shares. Any shares sold will be settled by the company issuing a corresponding number of new shares to the lenders of shares – the second part of the private placement.
“The company is of the view that is in the common interest of the company and its shareholders to raise equity through a private placement. By structuring the equity raise as a private placement, the company is expected to be in a position to raise equity efficiently, with a lower discount to the current trading price, at a lower cost and with a significantly lower risk compared to a rights issue,” GEOS said in Oslo Exchange filing.
The net proceeds from the private placement will be used to accelerate the decarbonisation process of the company, to ensure financial capacity and flexibility to pursue growth opportunities, as well as for general corporate purposes.
The shares will be available for sale by the company from March 9, 2022, and the last day of sale will be on March 17, 2022. GEOS noted it may, however, at any time resolve to stop its sale of offer shares on short or without notice. GEOS shares were trading at NOK1.60, down 12% against the closing price from the previous day.