Sacgasco Ltd (ASX:SGC) has announced that it has successfully placed 116,700,000 Common Shares to Sophisticated Investors to raise approximately $2.917 million before broker costs of approximately 5%.
The funds raised will be used primarily to accelerate the drilling preparations for 2022 in the Philippines by allowing Sacgasco, through its wholly owned Subsidiary Nido Petroleum Philippines, to award key contracts for drilling and production equipment for the two well drilling campaign it has planned at Nandino and Cadlao.
When an ASX-listed company announces a capital raising, it generally means it is selling more shares to raise money.
More often than not, the shares are sold at a discount to the company?s share price at the time to entice new and existing investors.
Shares of Sacgasco Ltd fell 3.45% following the announcement to $0.0.028/share.