Arrow Exploration Corp. begins trading on the AIM market of the London Stock Exchange; completes approximately £ 8.8million fundraiser

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Marshall Abbott, CEO of Arrow, said: “We are delighted to have completed our dual listing in London after receiving such support and interest in our story from new and existing shareholders”

(,,). announced the admission of all of its issued and to be issued share capital for trading on the AIM market of the London Stock Exchange PLC and, jointly, a fundraising of approximately £ 8.8 million (15.0 million Canadian dollars).

Admission took place on AIM from today, Monday, October 25, 2021, and trading in its ordinary shares with zero par value has started under TIDM code ‘AXL’ and ISIN CA04274P1053.

In a statement, Marshall Abbott, CEO of Arrow, said: “We are delighted to have completed our dual listing in London after receiving such support and interest in our story from new and existing shareholders. Our offer to the London public is unique. We have multiple short-term value catalysts in an extremely favorable, under-explored jurisdiction that already has existing infrastructure. “

“Our portfolio contains both development wells, offering immediate low-risk cash-generating growth opportunities, but also higher-risk exploration opportunities, which we look forward to drilling shortly. Rio Cravo Este should be fueled in the short term, it is an exciting time for Arrow and its shareholders, ”added Marshall.

READ: Arrow Exploration releases second quarter financial results showing positive cash position of $ 4.6 million as of June 30, 2021

The fundraising saw the placement and subscription of 140,949,545 new ordinary Arrow shares from new and existing investors, as well as the executive management of the company at an issue price of 6.25 pence ( 0.106 $ 125 CAD) each. Arrow’s top management invested around £ 0.83million (C $ 1.41million) in fundraising

Investors in the fundraiser will also receive a warrant for two shares, exercisable at 9p (C $ 0.15282) per new common share for 24 months from admission to AIM. At the fundraising price, the market capitalization of the company will be £ 13.1million (C $ 22.3million)

The company said the net proceeds from the fundraising – along with its existing funds, if needed – are expected to be used to drill two wells at Rio Cravo Este, starting in late 2021, and will also be deployed in the drilling. by Carrizales Norte. -1 exploration well. Additionally, the company will deploy funds to repay approximately US $ 3.15 million from a promissory note the company has with ().

As part of the fundraising, Canacol purchased 36,715,205 shares – representing 17.5% of the issued and outstanding common shares of Arrow – and 18,357,602 warrants. Prior to the acquisition, Canacol held 5,000,000 common shares of Arrow.

Canacol now controls 41,715,205 Arrow common shares, or approximately 19.9% ​​of the total issued and outstanding common shares, and 18,357,602 warrants. Assuming the exercise of the warrants, it would own or control 60,072,807 or approximately 26.6% of the total issued and outstanding Arrow common shares on a partially diluted basis for Canacol only. Canacol stated that it has acquired securities for investment purposes and, currently, does not intend to acquire further securities of Arrow, although it may acquire ownership or control of other securities of Arrow through the future depending on market circumstances.

Canadian private placement without a broker

In addition to the AIM float-related fundraiser, the company said it intends to raise up to an additional C $ 0.5 million through a non-middleman private placement at Canada. The private placement should be carried out at the same price as the fundraising (and in any event at a price not lower than the fundraising price). The private placement is expected to close in late October 2021 or early November.

The net proceeds of the private placement will also be allocated to the work program of the company.

The company’s common shares will continue to trade on the TSX Venture Exchange (TSX-V).

Arden is acting as the company’s appointed advisor, broker and bookrunner in connection with fundraising and admission to AIM. Arden received £ 459,260 (CA $ 779,823) in fees as part of the fundraiser.

Contact the author at jon.hopkins@proactiveinvestors.com


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