Leed Petroleum stumbles as Viridas sells
Investment company Viridas (VIR) saw its shares jump more than 12% on Tuesday after it announced that it has sold 592,666,667 ordinary shares in AIM favourite Leed Petroleum (LDP) at an average price per share of 0.48p or for an aggregate consideration of £2,869,200.
Following this sale, Viridas will continue to hold 166,666,667 warrants to subscribe for new ordinary shares at a subscription price of 0.15p per share.
"Given the increase in the valuation of Leed, and the strong interest in the company being shown by a range of investors, Viridas has decided to sell the majority of its holding in order to make funds available for other investment opportunities," explained Viridas chairman Nicholas Lee.
He added: "I continue to believe that Leed represents an exciting investment opportunity and so Viridas has decided to retain both a financial interest in Leed and I will also continue as a director of the company."
Leed Petroleum shares have ruled the oil and gas producers sector for more than six months, adding 414% in the last three months alone. But Tuesday’s announcement from Viridas saw Leed stock tumble more than 19%.
Lee said that he firmly believes that Viridas's strategy is capable of creating significant value for shareholders, as demonstrated by the substantial return made from its investment in Leed.
"In addition, I see the current interest in Leed as being an endorsement of our initial investment decision and a strong indication that Leed is set for an exciting future."
