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Echo Energy Gets Green Light For Assets Buy Amid Share Placing Pause (ALLISS)

[ 03 Jan 2018 16:19 ]

LONDON (Alliance News) - Echo Energy PLC said Wednesday its proposed acquisition of three onshore Argentina oil and gas permits became unconditional after receiving shareholder approval.

Echo said all resolutions were passed at its annual general meeting earlier on Wednesday including the one associated with the proposed acquisition of 50% interests in each of the Fraccion C, Fraccion D, and Laguna De Los Capones concessions, as well as in the Tapi Aike exploration permit.

This followed a deal in early November signed with Compania General de Combustibles SA regarding a farm-in agreement for the onshore oil and gas licences in Argentina, which constituted a reverse takeover.

In mid-December, Echo raised GBP6.4 million through a 36.4 million share placing following readmission of the company's shares to the AIM market. Shares had been suspended after the reverse takeover was proposed. The placing shares represented 9.1% of the enlarged share capital of the group.

The proceeds of the placing will be used to develop the licences, alongside some of the company's existing cash resources, as well as for general working capital purposes.

Echo also said its proposed 11.4 million shares open offer intended to be launched in January had been paused. The offer price was 17.5 pence per share, looking to raise up to GBP2.0 million.

"To avoid unnecessary costs, the open offer will only now be launched if, in the opinion of the directors, the company's ordinary shares trade at a level that supports the open offer being made prior to January 31, 2018," the company said in a statement.

Shares in Echo were 3.6% higher at 14.25 pence on Wednesday.

By Ahren Lester; ahrenlester@alliancenews.com.

Copyright 2018 Alliance News Limited. All Rights Reserved.


Echo Energy Gets Green Light For Assets Buy Amid Share Placing Pause (ALLISS) - Alliance News

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