Penn Pacific Corp. of Santa Ana said Wednesday it intends to raise $8 million for the acquisition of oil and gas properties and other purposes by selling 32 million shares of stock at 25 cents a share to investors located in Britain's Channel Islands.
The stock sale, being arranged by Eastar Investments Ltd. of Singapore, will more than double the number of Penn Pacific's outstanding shares to 57 million. The transaction is subject to approval of the oil and gas exploration firm's existing shareholders.
Penn Pacific emerged from federal bankruptcy proceedings in December, 1986, under a reorganization plan that left the company essentially debt free. Its stock traded in a range of 22-25 cents per share Wednesday in the over-the-counter market.