Ocean bottom seismic specialist Magseis has privately raised NOK 300 million ($39 million) through the application and conditional allocation of new shares.
The net proceeds from the private placement will be used to finance the company’s current growth plans and for general corporate purposes.
“The board is of the opinion that the private placement will allow for the company to raise capital more quickly and, at a lower discount compared to a rights issue. Furthermore, the board is of the opinion that, in the current market, a private placement has a larger possibility of success compared to a rights issue,” Magseis said in a statement.
The shares have been allocated in two tranches. The tranche 1 of 6,089,239 new shares has already been approved by the company’s board, while the tranche 2 of 10,577,428 new shares remains subject to the approval of an extraordinary general meeting of the company expected to be held on February 16, 2018.
Subject to completion of the private placement and all necessary corporate resolution being made, Magseis board has resolved to carry out a subsequent offering of up to NOK 50 million in the company directed towards shareholders in the company as of 25 January 2018.