EastCoast Energy reports on its plans to issue share rights
East Coast Energy Corporation this week has announced its plans to raise approximately CAD 21.5 million before expenses by means of a rights issue. There are the following plans that
- each holder of Class B Shares will receive one right for each Class B Share held and that seven rights will entitle the holder to subscribe for one Class B Share at a price of CAD 6.43;
- each holder of Class A Shares will receive one right for each Class A Share held and that seven rights will entitle the holder to subscribe for one Class B Share at a price of CAD 6.43.
The subscription price of CAD 6.43 represents a 15% discount to the closing price of the Class B Shares on 8 September, 2006. Under the terms of the rights issue, the maximum amount of Class B Shares will be approximately 3,345,540. The received funds will be primarily used to drill a development and exploration on the Company’s licence acreage in Tanzania, during the first half of 2007 to meet the rapidly increasing demand for gas in the country. Also these funds will strengthen the Company’s ability to make use of additional exploration and development opportunities.
East Coast Energy Corporation Limited is a publicly listed company incorporated in the British Virgin Islands. Company’s headquarters is located in Tortola, BVI, but main operations offices are in Dar es Salaam in Tanzania. It focuses on the exploration and production of Tanzanian natural gas and the sale of “Additional Gas†to markets in East Africa.