05/10/2009
GB00B0MH9D42/GBP/PLUS-exn
CAP ENERGY LIMITED
("Cap" or the "Company")
COMPLETION OF FUNDRAISING
On 3 July 2009, Cap announced that it had it had posted to shareholders a circular containing
information about a proposed fundraising of up to £564,346 through the issue of Convertible Unsecured
8% Loan Notes ("the Notes").
Cap is pleased to announce that the fundraising has now been completed and that Notes to the value of
£505,750 will be allotted as follows:
* £193,400 in respect of cash subscriptions from shareholders and other investors, including
Worship Street Investments Plc ("Worship Street");
* £25,000 in consideration for the allotment to the Company of 1,000,000 ordinary shares in
Worship Street;
* £100,000 to CSV Holdings, Inc ("CSV") in respect of (i) the $100,000 due to CSV pursuant to
Cap's acquisition from CSV of interests in the Stark's Dome and Iberia Dome projects in Louisiana,
USA; and (ii) $60,000 of capital expenditure payments owed to CSV; and
* £20,000 to satisfy miscellaneous creditors, principally fees owed to Directors of Cap.
An additional £167,000 of Notes will be issued to CSV as the final element of the consideration due to
CSV for the acquisition of the Louisiana interests. This amount could not be paid in ordinary shares
in Cap, as originally contracted because of the 29.9% limitation on CSV's shareholding in Cap. The
Notes held by CSV are not capable of conversion if conversion would result in CSV's shareholding in
the Company exceeding 29.9%.
The 1,000,000 shares in Worship Street allotted to the Company provide it with the flexibility to
raise further cash, if required through a market disposal.
This fundraising and the off-setting of other cash liabilities will strengthen Cap's balance sheet
through the virtual elimination of short term debt and provide working capital covering corporate
overhead and loan interest costs plus planned capital expenditure for the next 12 months.
As an incentive to the Directors, Share Options at an exercise price of 10p, with an expiry date of 31
December 2014 will be issued to: John Killer - 500,000, Tim Hearley - 180,000, and Clair Opsal -
90,000.
It is anticipated that publication of Cap's Report and Accounts for the year ended 31 December 2008
and its interim results for the six months ended 30 June 2009 will be published shortly, at which time
trading in the Company's ordinary shares on the PLUS-quoted market are expected to re-commence.
An operational update will be included in the Report and Accounts and announced when they are
published.
The Directors of Cap Energy Limited are responsible for the contents of this announcement.
Contact:
Cap Energy Limited
John Killer
Tel: 07979 903673
St Helens Capital Partners LLP
Mark Anwyl or Duncan Vasey
Tel: 020 7368 6959
Cap Energy Ltd