StockMarketWire.com - Oil and gas company i3 Energy announced the conditional sale of the Saskatchewan assets to Harvard Resources for CAD$45m.

The company also said it planned to raise £30m through an equity fundraise at an 18% discount to fund the acquisition of Gain.

On 6 July 2020, the company had entered an agreement to acquire all the petroleum and infrastructure assets of Gain Energy for CAD$80m.

Since the agreement, however, the company had agreed to sell the petroleum and infrastructure assets currently held by Gain, which were located in Saskatchewan, to Harvard Resources for CAD$45m.

The company also provided an update on annual performance as losses widened on rising costs.

For the year ended 31 December 2019, pre-tax losses widened to £10.8m from £1.9m on-year.

'The majority of the loss resulted from the group's expenses relating to day-to-day operations, finance costs, interest expenses and stock option scheme expense,' the company said.

Administrative expenses swelled to £7.2m from £2.4m on-year.

Looking ahead, the company said it anticipated there 'will be distressed M&A opportunities that will arise as a result of this [Covid-19] situation and are positioning themselves to take advantage of these as they arise.'