One of the worst performers on the ASX on Friday was the Sundance Energy Australia Ltd (ASX: SEA) share price.
The oil and gas producer's shares finished the day lower by 18% to 5.9 cents.
Why did Sundance Energy Australia's shares sink like a stone?
This morning the company's shares returned to trade after a trading halt following the successful completion of the institutional component of its fully underwritten entitlement offer.
According to the release, the institutional component of the entitlement offer raised approximately $39.8 million from the issue of new shares at a price of 5.9 cents per share.
The company advised that the offer was well supported by eligible shareholders who took up approximately 58% of new shares available.
The retail component will open on March 21, but with the offer price now the same as the current share price, shareholders may not be overly eager to pick up shares in the offer.
What are the funds being used for?
The money raised will be used to fund the company's acquisition of 21,900 net acres in the oil/volatile oil window of the Eagle Ford in Texas for approximately US$221.5 million.
Should everything go to plan, Sundance will become a leading Eagle Ford operator with 57,000 net acres and pro forma production of 10,300 boe/day.
