Ramba Energy to raise S$2.88m from placement of 32m new shares

RAMBA Energy is placing out 32 million new shares at S$0.09 apiece to Judah Value Activist Fund to raise S$2.88 million in cash. The issue price for the placement represents a premium of about 11.5 per cent over the volume weighted average price of S$0.0807 on May 30.

Judah Value is an investment fund domiciled in the Cayman Islands and is managed by Swiss-Asia Financial Services.

In addition, the company has agreed to constitute 64 million non-listed, non-transferable warrants which will be issued to Judah Value. Each warrant carries a right to subscribe for one ordinary share at S$0.12. This would equate to S$7.6 million if all warrants are exercised. The exercise price for the warrants represents a premium of about 48.7 per cent of Ramba's volume weighted average price on May 30.

Ramba's rationale for the share placement is to increase its general working capital, it said in a filing with the Singapore Exchange.

The placement and warrant shares represent about 17.5 per cent of Ramba Energy's enlarged share base of about 547.7 billion as at June 5 and approximately 14.9 per cent of the enlarged issued and paid-up share capital of 643.7 billion shares after completion of the proposed placement and the full exercise of the warrants into warrant shares. With the announcement of the share placement and warrants issue, the company has requested a lift in the suspension of trading of its shares, which was halted on June 1. Its shares last traded at S$0.083 on May 31.

Separately, Ramba said its unit, PT Hexindo Gemilang Jaya, had on June 4 entered into a settlement agreement with former joint venture partner, Super Power Enterprises Group (SPE), over a project in Lemang, Indonesia.

The settlement agreement will see Hexindo pay SPE US$10 million and the final settlement of all outstanding amounts recoverable by SPE from Hexindo from the arbitration award in SPE's favour from September 2016.

In a filing with the Singapore Exchange Ramba said:"Hexindo shall pay the Settlement Sum by assigning to SPE all amounts to which Hexindo is or may be entitled under any agreement between Hexindo and Mandala Energy Lemang relating to the Lemang Block, including revenue from sale of oil and gas from the Lemang Block and reserve bonuses and other sums payable under the farm-in agreements dated Oct 4, 2015 and Sept 16, 2017 and call option deed dated Sept 16, 2017 entered between Hexindo and Mandala with instructions to Mandala to pay such amounts directly to SPE up to the value of the settlement sum."

If the settlement sum is not paid in full by Sept 30, 2022, Hexindo shall further procure that any payment due to Hexindo from Mandala in relation to the Lemang Revenue or pursuant to the farm-in agreements is assigned to SPE at US$2 million per annum, with its first due date on or before Sept 30, 2023.

Ramba also said on Tuesday evening that it has submitted a request to the government of Indonesia's Special Taskforce for Upstream Oil and Gas Business Activities (MIGAS) for the necessary approvals required for preparation of the qualified persons report for its 2017 annual report and will be able to finalise the announcement upon receiving such approval from MIGAS.