Bahamas Petroleum opens mutual fund to Bahamian investors
The oil and gas exploration firm opened the fund last month under the 1992 Companies Act of The Bahamas.
The fund’s objective is to create a pathway for Bahamian investors to invest in the group and exploration activities at the planned upcoming exploration well.
The fund will open itself to qualifying investors on the 6 January until 7 February 2020 and has been designated as ‘professional’ meaning only professional and institutional investors will be able to subscribe.
Despite this, the group’s adviser of the fund, Leno Corporate Services, intends to apply for a new designation as a ‘standard fund’ to open the fund up to non-professional retail investors in the Bahamas.
As a result of the move, the company has created an even playing field between Bahamian investors and shareholders by agreeing to issue 100 million shares at 2p, the same price offered as part of a recent equity raise.
"It has long been the Company's intention to provide Bahamians a means of investing directly in this nationally significant project,” said Simon Potter, CEO of Bahamas Petroleum Company.
Potter highlighted that whilst the royalty regime in place ensures economic value for Bahamians via government revenues, the mutual fund would “personally benefit” individuals should the project be successful.
The decision regarding the application for a standard fund is in due course, Bahamas Petroleum explained, and further updates will be provided when appropriate in future.
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