Good evening,

In case you needed proof activist investor Nick Bolton has a string of misses for every Magellan Global Fund-like hit, here’s one.

Vintage Energy, an ASX-listed oil and gas explorer where Bolton’s Keybridge Capital popped up above the substantial shareholding mark in February, was in discussions with investors at the weekend for a shot-in-the arm equity raising.

Vintage’s brokers were building support for an $8 million placement and rights issue at a circa 37.5 per cent discount to the last traded price and a 40.3 per cent discount to the 15-day volume weighted average price. In all, that’s about 92 per cent of the Vintage’s existing securities on issue. The terms were still being discussed with potential backers, ahead of a trading halt and formal launch on Monday morning.

The big question is how Bolton’s Keybridge Capital would play the raise. It would be highly unusual for an activist investor to allow itself to be diluted significantly, but Keybridge’s shares have been suspended since March 1, pending ASX queries on its December half reporting on February 29.

It had $1.9 million cash and $13.4 million listed securities per January 31’s unaudited accounts – which arguably, is plenty of liquidity on face value. However, it also listed $12 million in liabilities, the attaching note for which seems to be missing from the filing. While the ASX query process rolls on, Keybridge has also been buying shares in Australian Unity Office Fund, as revealed by Street Talk.

It’s not a stretch to say Vintage Energy, where Bolton’s Keybridge was paying 2.6¢ a share as recently as December, has been far from a successful trade given its $1.31 theoretical ex-rights price.

As for Vintage Energy, chaired by former Beach Energy boss Reg Nelson and down 46.7 per cent year-to-date, the company would be hoping its broker syndicate can come good on the raise to keep the lights on.

Morgans and Unified Capital Partners were leading the raise, with MST mandated as a co-manager.

Read the full story tomorrow and more on the Street Talk page.

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