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Crown Point Raises $30M in Rights Offering, Insider Backs 91% Stake
Crown Point Energy closed a $30M rights offering, with insider Liminar taking 91% of shares. Proceeds repaid a loan used for Chubut concessions.
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Crown Point Energy closed a rights offering that raised $30 million, with its largest shareholder taking nearly all the new shares. The company issued 240 million common shares at $0.125 each. Liminar Energía, an insider that already held a majority stake, bought 238.3 million of those shares under a standby commitment. After the deal, Liminar owns about 91% of Crown Point, or 284.9 million shares total.
The proceeds went straight to repay a $30 million loan from the same insider. That loan had funded Crown Point's acquisition of a 95% operated interest in three oil and gas concessions in Argentina's Chubut province – El Tordillo, La Tapera and Puesto Quiroga. The repayment came through Crown Point's wholly owned subsidiary, CPESA, which also used some cash on hand for the loan plus accrued interest.