Falcon Energy Group is proposing a renounceable non-underwritten rights issue of warrants to shareholders of up to 162,826,994 warrants at an issue price of $0.10 each, on the basis of one warrant for every five existing ordinary shares held.

Each warrant carries the right to subscribe for one new share at the exercise price of $0.40 and has an exercise period of three years.

Assuming all shareholders subscribe to the warrants, Falcon Energy is expected to raise $16.1 million in net proceeds, after deducting professional fees and related expenses.

And if all the warrants are fully exercised and converted into shares of the company, the proceeds from the exercise of the warrants will come up to $65.1 million.

Falcon Energy is one of the leading providers of integrated support services for the international Offshore Marine and Oil & Gas sectors, supporting clients along the entire oil production cycle. It has a proven track record and solid reputation in servicing global oil majors and oil contractors, focusing on the production phase of oilfield activities.

Falcon Energy believe that the warrants issue will provide shareholders with the opportunity to obtain further equity participation in the company by subscribing for the new shares through the exercise of the warrants. In addition, the proceeds arising from the subscription and/or exercise of the warrants will provide additional financial flexibility to the group.