Sea Dragon Energy Inc. (CVE:SDX) (PINK:SDRYF) stock price shot up 27% on Tuesday, but had no success in pushing it further during Wednesday’s session. Nonetheless, the company had potent game changing news behind the price increase, thus their value might just continue to grow as discussed plans come into fruition.
On January 9, the company announced a funding round for $75 million which it expects to raise by issuing subscription receipts. The exact pricing and number of these will depend on the situation on the market and will be announced when a final short form prospectus is filled to potential investors.
One day before that, on January 8, the company said they have entered into an arm’s length share purchase agreement to acquire National Petroleum Company Egypt Limited. The business will be acquired through a wholly-owned subsidiary of Sea Dragon for a total of $60 million in cash accompanied by 350 million SDX common shares.
The largest part of the newly announced funding will be directly used for this acquisition.
Sea Dragon is interested in three concessions owned by National Petroleum. The company also gets 12.75% interest in a fourth, South Ramadan, concession in the Muzhil field.
