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Crown Point Raises $30M in Rights Offering, Largest Shareholder Hits 91% Stake
Crown Point Energy closed a $30M rights offering, using proceeds to repay a loan from Liminar, its largest shareholder, which now owns 91% of the company.
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Crown Point Energy closed a rights offering that raised US$30 million, the company said Thursday. The Calgary-based oil and gas producer issued 240 million common shares at US$0.125 each.
Proceeds went to Crown Point's wholly owned Argentine subsidiary, CPESA. CPESA used the cash to repay a US$30 million loan from Liminar Energía, Crown Point's largest shareholder. That loan had funded part of the purchase price for a 95% operated interest in three hydrocarbon concessions in Chubut province.
Liminar took up 238.3 million shares under its stand-by commitment. After the deal, Liminar holds 284.9 million shares, or roughly 91% of Crown Point's outstanding stock. The company now has 312.9 million shares issued.