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Shares in Eco Atlantic Oil & Gas Ltd dropped on Wednesday after the company said it raised £19.5 million in a discounted equity fundraise.
Eco said 64.9 million shares were placed or subscribed for at a price of 30 pence each, a 17% discount to Tuesday's closing price of 36.10 pence.
Shares were trading 16% lower at 30.40p each in London on Wednesday morning.
The Toronto-based oil and gas exploration company said that the fundraise consisted of placing of 48.0 million new shares, raising proceeds of £14.4 million.
Further, Eco Atlantic raised £3.1 million through a subscription of 10.2 million shares and £2.0 million through a retail offer of 6.7 million shares.
The capital raised will fund the drilling of the Gazania-1 well on Block 2B, offshore South Africa. This is estimated to cost $23 million.
The equity fundraise was first announced late Tuesday.
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