TXO, an AIM quoted oil and gas investment company, has completed an equity placing of 521.5m new ordinary shares at 0.2p per share.

The placing, which is conditional of admission, raises £1.043m before expenses.

One of the company's main investments is the Grand Bahamas Group, which is establishing a waste oil collection facility and Hydrocarbon Recovery Plant in the Bahamas.

The resulting funds of the placing are to be used primarily to exercise part of its option over additional shares in GBG and so increase its shareholding above the current holding of 23.64%. This will enable GBG to progress development of its hydrocarbon recovery plant, to expand its investment portfolio and for general working capital purposes.

Chairman Tim Baldwin said: "We are delighted by the response to the equity raise and to be able to welcome onto our share register a number of well-known City institutions. We are particularly excited by our investment in GBG and its development of a Hydrocarbon Recovery Plant in the Bahamas and we look forward to reporting on its progress during 2013."

The share price fell 24.56% to 0.21p by 11:30 Friday.

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