Canadian Overseas Petroleum Ltd - London and Calgary, Canada-based oil and gas exploration company with operations in Wyoming, US - Announces completion on Monday of ‘critical’ $2.5 million equity financing, issuing 1.31 billion shares to its ‘leading’ equity and convertible bond investor Anavio Capital Partners LLP. Upon closing, Anavio holds 24.5% of company’s share capital. Company will also grant Anavio 1.31 million warrants exercisable at 0.15 pence per share.

Financing addresses firm’s ‘urgent liquidity needs’ providing short-term working capital to retain an independent E&P technical consultant in the US; to maintain its public listings in London and Canada; and to appoint a chief restructuring officer. Says it is also exploring ways to allow investors to participate in an equity placing. Warns however that it ‘remains in a precarious financial situation with very limited liquidity’.

Current stock price: 0.087p, down 16% in London on Tuesday

12-month change: down 99%

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