Swala Energy Limited (“Swala” or “the Company”) is pleased to announce that it has agreed to a
private placement of 19.5 million shares to two sophisticated investors to raise AU$4.4 million
before costs (“Placement”). The Placement is within the Company’s 15% capacity pursuant to ASX
Listing Rule 7.1. The Placement, which followed an unsolicited approach, was made at a price of
$0.23 per share. This represents an 18% premium to the share price as at the close of business on
Friday 8th November, against a dilution to exisiting shareholders of 12.7%.
The principal investment has been taken up by the Hayaat Group, a private investment company
headquartered in Abu Dhabi who subscribed for $3.3 million. Following the Placement, the Hayaat
Group will own 9.4% of the Company and will nominate one director to join the Swala Board. The
remaining $1.1 million was subscribed to by Dr. Reginald Mengi, a private investor, who will own
3.3% of the Company following the Placement.
The Hayaat Group has significant experience of, and a strong focus on investments in East Africa
where the company has positioned itself to take advantage of the continued economic growth.
Hayaat Group has interests in a range of sectors including E&P, Power, Natural Resource support
services and trading. The Group also has significant experience in downstream projects in the Middle
East and Africa.
Upon completion of the Placement Swala will have 153.7 million shares on issue, of which 21.5
million will be escrowed until April 2014 and a further 45.3 million will be escrowed until April 2015.
The funds will be used to accelerate the Company’s work programme in its existing licences, for
corporate activity and for continued business development.
Dr. David Mestres Ridge (CEO) said, “We are very pleased to welcome two strategic investors, one
being a strategic investor of the calibre of the Hayaat Group. The approach by both investors was
unsolicited and this interest, together with the premium to the market price at which both were
willing to invest, recognises the potential that our work in East and Central Africa is beginning to