Electric Guitar (AIM:ELEG) has agreed a £227,273 cash subscription from Vega Upstream JV, to help fund due diligence and costs related to its proposed acquisition of interests in oil and gas assets in Oklahoma.
The Investment Shares will be issued at the company's current suspended share price of 0.08p per share, will represent 9.36% of Electric Guitar's issued share capital as enlarged, will be locked in for 12 months and will constitute Vega Upstream JV's entire holding in the company, the Company said.
Vega Upstream JV is a joint venture between ADM Energy and Covenant Oil Group and its subscription is intended to assist funding of due diligence and costs connected to Broadgate Midcon, the special purpose vehicle established to own the Broadgate Assets in Oklahoma, and Electric Guitar notes that exercising its option to acquire Broadgate Midcon would constitute a reverse takeover under the AIM Rules and therefore require shareholder approval.
