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i3 Energy losses widen; announces discounted equity raise, conditional sale of Saskatchewan assets

By BFN News | 09:59 AM | Friday 07 August, 2020

Oil and gas company i3 Energy announced the conditional sale of the Saskatchewan assets to Harvard Resources for CAD$45m. The company also said it planned to raise £30m through an equity fundraise at an 18% discount to fund the acquisition of Gain. On 6 July 2020, the company had entered an agreement to acquire all the petroleum and infrastructure assets of Gain Energy for CAD$80m. Since the agreement, however, the company had agreed to sell the petroleum and infrastructure assets currently held by Gain, which were located in Saskatchewan, to Harvard Resources for CAD$45m. The company also provided an update on annual performance as losses widened on rising costs. For the year ended 31 December 2019, pre-tax losses widened to £10.8m from £1.9m on-year. 'The majority of the loss resulted from the group's expenses relating to day-to-day operations, finance costs, interest expenses and stock option scheme expense,' the company said. Administrative expenses swelled to £7.2m from £2.4m on-year. Looking ahead, the company said it anticipated there 'will be distressed M&A opportunities that will arise as a result of this [Covid-19] situation and are positioning themselves to take advantage of these as they arise.'

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