By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Oando Plc whose subsidiary Oando Energy Resources Inc (OER) is seeking to raise $50 million via private placement will today Tuesday hold an extraordinary general to get shareholders approval.

Late January 2014 Oando announced that OER intends to do a $50 million private placement to raise fresh funds, in addition in connection with the Offering, OER intends to acquire a 5% interest in OML 131 in exchange for common shares of the Company (the “OML 131 Acquisition”).

According to the oil marketer, the Offering is expected to consist of 35,070,063 common shares of the Company and 17,535,031 common share purchase warrants for gross proceeds of $50 million (each Common Share and half-Warrant, a “Unit”) at a price of C$1.57 per Unit.

Oando says that each whole Warrant will entitle the holder thereof to acquire one common share of the Company at a price of C$2.00 per common share for a period of 24 months from the date of the closing of the COP Acquisition.

The oil marketer said if after a period of six months from the closing of the COP Acquisition, the common shares of the Company trade on the Toronto Stock Exchange (“TSX”) at a price greater than C$3.50 for a period of at least 10 consecutive trading days, the Warrants will expire on the date which is 30 days following the last day of such 10 consecutive trading days.

InvestAdvocate will monitor trends as regards the EGM and come up later with details.