Infrastrata's shares tumble on proposed placing plans

Infrastrata's shares are down almost 20% on news it intends to raise up to £750,000 at 0.5p a share to repay the Baron Oil loan and begin the first phase of Front-End Engineering Design (FEED) for its Islandmagee gas storage project.

The proposed placing would be conducted via an accelerated book build.

In January, Infrastrata entered into a secured loan facility agreement with Baron Oil of up to £300,000 to meet its short term working capital needs, of which £200,000 has been drawn.

Last year, the company selected FEED contractors for the above-ground facilities and the sub-surface elements of its Islandmagee project and associated loan funding from the contractors to partially finance the development of the project.

It added that the first phase of the FEED was known as Concept Evaluation. During this phase the FEED contractors would undertake a value enhancement exercise on the current design basis.

At 11:44 GMT, shares in AIM-listed Infrastrata were down 18.52% to 0.55p each.