Friday 20 September 2019

Providence Resources secures $3.76m lifeline ahead of Dublin meeting

Tony O’Reilly Junior of Providence
Tony O’Reilly Junior of Providence
Donal O'Donovan

Donal O'Donovan

Oil and gas explorer Providence Resources has secured a $3.76m (€3.43m) financial lifeline just hours ahead of its annual general meeting in Dublin.

The company has been forced to slash operations while it waits for a long delayed $9m cheque from Chinese investor Apec.

On Thursday, Providence announced that it has conditionally raised approximately $3.76m through the proposed issue of 59,765,890 new ordinary shares to institutional and other investors at a price of £0.051, a discount of approximately 7.3pc to the closing price  on Tuesday.

Without the new money, the company’s ability to continue as a "going concern will be compromised."

Shareholders must accept the new deal at an extraordinary general meeting called for September 30.

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