Scirocco Energy PLC (LON:SCIR) – formerly Solo Oil – has repeated its support of investee Helium One which is now set to join London’s AIM market in early December.
Helium One is coming to London through a merger with Attis Oil and Gas Limited (LON:AOGL), a cash shell.
The deal terms value Helium One at £6mln, or 2.84p – and sets a value of £605,000 for Scirocco’s stake (which is predicted to be around 4.6% of the enlarged company).
It is planned that £5mln will be raised alongside the merger with the proceeds earmarked for a programme of at least three exploration wells, slated for the first half of 2021.
Scirocco chief executive Tom Reynolds commented: “This is a positive development that validates Helium One’s story and provides it with a platform from which it can deliver material growth.
“The valuation read across highlights the challenging market conditions at this time, but in our view, it’s far more important that we now have exposure to a very exciting story with a listing on a recognised exchange.
“The exceptionally strong performance of other listed helium companies around the world in recent times gives us confidence in the value creation that Helium One can deliver following this listing, especially with such meaningful catalysts on the near-term horizon.
“As a long-term shareholder in Helium One, we wholly support this development and look forward to conclusion of the process.”
In a separate statement, Helium One chief executive David Minchin added: “We are delighted to be entering into this transaction with Attis which we hope will lead to us being able to bring Helium One to the London market,” chief executive David Minchin said.
“Not only is Helium One one of the few companies with a globally significant resource seeking to address the current helium supply crisis, it could also become the only company on AIM where investors can get involved with the exciting and expanding helium space.”
Attis Chairman, Paolo Amoruso, added: “This potential transaction is excellent news for the shareholders of Attis.
“With helium wholesale prices doubling over the last two years based on critical under-supply, listed primary helium companies in Canada and Australia have experienced significant share-price appreciation over the last 6 months.”