Niko Resources Ltd. (TSX:NKO) is issuing $500 million in new equity to fund its oil and gas activities concentrated in India and Bangladesh.
Niko, which has 43.3 million common shares outstanding, said Friday it will sell 4.8 million shares at $105 each.
Its stock declined three per cent in morning trading on the TSX, losing $3.20 to $104.90, up from less than $60 a year ago.
It‘s the third stock issue in less than a year for Niko, which netted $121.1 million last August and $179.5 million in February. It also recently arranged a US$550-million credit facility.
The company, which projects capital spending this year of $361 million to $387 million, lost $3.1 million on sales of $29.1 million in the first quarter, following a 2006 net loss of $31.6 million.
The new equity issue through a syndicate led by Canaccord Capital is expected to close Aug. 9.
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