BPC’s initial subscription closes at $914,000

Bahamas Petroleum Company (BPC) closed out its initial offering for shares in its mutual fund investment vehicle just shy of $1 million in subscriptions.

The company announced on Friday that to date, Leno Corporate Services Limited, which is managing the fund, received subscriptions in Bahamian dollars totaling $914,000 (roughly £700,000) for which BPC will issue 35,337,328 ordinary shares based on the subscription price.

It expects trading on the shares to begin on February 21 on the AIM market of the London Stock Exchange.

BPC offered 100 million ordinary shares at two pence when it opened subscriptions on January 6, which it said was the same price available to UK investors at the most recent open offer and placing last November.

The company maintained that it wanted to give Bahamian investors the opportunity to invest in a fund they would have otherwise been precluded from.

“Given the company’s share price is currently significantly greater than the initial subscription price of two pence per share, BPC has advised Leno that it will not accommodate any further late or additional subscription entitlements at this level. However, seeking to ensure the opportunity for further local Bahamian participation in the project is maintained as the venture gains greater public profile, the company has agreed to fix an issue price for subscription requests, at the first valuation event on March 31, 2020 only, at 3.35p per share, being the closing market price of BPC shares on February 12, 2020. This subscription price will only apply for up to a maximum of 40 million additional shares,” the company stated on Friday.

“All proceeds from the initial and subsequent subscriptions will be received by BPC in Bahamian dollars and consequently will be applied by BPC against its domestic Bahamian costs; and as such does not form a direct part of the company’s capital strategy for financing of the Perseverance #1 well.”

BPC Chief Executive Officer Simon Potter said on Friday that the fund will continue to accomplish its objective, in creating a vehicle through which Bahamian investors can, should they so wish, participate now or in the future in the fortunes of the company.

“I would emphasize for all shareholders’ benefit that any funds raised from the fund initiative, now and in the future, will be additive to our existing financial resources but are not essential to meeting the estimated costs of drilling, for which costs we have been implementing a staged, coordinated funding strategy, as previously communicated to the market,” he said in a statement.

Following admission onto the London Stock Exchange, BPC’s issued share capital will consist of 2,170,100,114 ordinary shares, with each ordinary share carrying the right to one vote, the company noted.

“This figure of 2,170,100,114 ordinary shares may therefore be used by shareholders in the company, as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the company under the FCA’s (Financial Conduct Authority) disclosure guidance and transparency rules,” BPC stated.

BPC announced in November that it had engaged Bahamian investment services and fund management firm Leno Corporate Services to act as its advisor for the creation of its Bahamian domiciled mutual fund.

The initial subscription period ended on February 12.

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Paige McCartney

Paige joined The Nassau Guardian in 2010 as a television news reporter and anchor. She has covered countless political and social events that have impacted the lives of Bahamians and changed the trajectory of The Bahamas. Paige started working as a business reporter in August 2016. Education: Palm Beach Atlantic University in 2006 with a BA in Radio and Television News

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