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Interra Resources to raise S$2.8m in private placement

MAINBOARD-LISTED Interra Resource has entered a conditional subscription agreement that will raise S$2.8 million and give placee Poly Legend International a 9.53 per cent stake of its enlarged issued share capital, the watch-listed petroleum exploration and production firm said on Monday night.

The agreement is for the subscription of an aggregate of 62.5 million new ordinary and fully-paid up shares in Interra Resources, by way of a private placement at an issue price of 4.5 Singapore cents per share.

The subscription price was arrived at following arm's-length negotiations, and represents a discount of 9.64 per cent to the volume-weighted average price of 4.98 Singapore cents per share based on trades on April 20.

The aggregate consideration of S$2.81 million will enable Interra to raise estimated net proceeds of S$2.8 million, which it intends to use fully for general working capital purposes.

Incorporated in Hong Kong, Poly Legend's main business is petrochemicals and other commodities trading. It is a strategic investor in Interra and agreed to subscribe "as part of its business strategy to gain exposure and experience with the upstream business of the oil industry", said Interra. Poly Legend has not asked for a board seat.

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Interra shares closed down 0.3 Singapore cent or 5.77 per cent at 4.9 Singapore cents on Monday before the news.

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