24 Mar 2010
LG advises on fundraising for international natural resources AIM company
International business law firm Lawrence Graham LLP ("LG") has acted for AIM client Cove Energy Plc ("Cove") on a fundraising which will take the aggregate funds raised by the company since last summer to over £70 million.
Cove, the AIM quoted upstream oil and gas company, raised £25.7 million by way of a placing of shares to fund its ongoing costs relating to exploration in the Rovuma Basin, offshore Mozambique and for general working capital requirements.
Corporate partner Geoff Gouriet led the team, which also included senior associate, Farhod Moghadam, and associates Rebecca Gordon, Jenna Beever and Vuyelwa Chigaru.
Geoff said: "We are delighted to have advised Cove on another successful fundraising. The institutional investor interest in Cove is a testament to Cove's success since completing the acquisition of its assets in Tanzania and Mozambique."
Commenting on the transaction, John Craven, CEO of Cove Energy, said: "We are very pleased to announce this oversubscribed and successful institutional fundraising, which reflects the positive sentiment towards the Company and its assets in the market. Following on from the success at Windjammer, the funds from the placing will secure an exciting Mozambique drilling programme for Cove shareholders in the coming months ahead. We look forward to updating the market in due course."
Cenkos Securities plc is Cove's financial adviser and nominated adviser and is acting as sole book runner to the placing.
LG previously advised Cove on its conditional acquisition of certain oil and gas assets in Mozambique and Tanzania which constitute a reverse takeover under the AIM Rules and a £42 million fundraising. Earlier last year LG also advised Cenkos Securities Plc, nominated adviser and broker to Cove (then known as Lapp Plats plc) in connection with a placing of 35,000,000 shares raising a total of £4.2 million.
Notes to editors:
- LG advises entrepreneurial and growth market clients seeking to raise capital for their business ventures. We are named as adviser to nine of the AIM 100 companies, with no other firm listed as acting for more than five.
- LG is also ranked as the no. 1 legal adviser by market capitalisation of all AIM companies (Hemscott, January 2010)