20th Apr 2020 17:59
(Alliance News) - Angus Energy PLC on Monday said it has issued a GBP1.4 million convertible loan notes to shareholder Knowe Properties Ltd in order to partially repay an earlier loan note.
Shares in Angus ended 25% higher at 0.62 pence in London.
The new 4% per annum noted is unsecured and is convertible at its two-year maturity date at the lowest of either GBP0.01 or the price of the lowest of any share or share option issue to raise at least GBP250,000.
Angus may also repay the noted in part or whole at up to two months before maturity with the grant of warrants equalling the face value of the amount repaid. Such warrants are exercisable at 1.3p or a 30% premium to the conversion price, whichever is lowest. Angus will not issue options to directors or staff at below GBP0.01 during the new term note's term.
Part of the new loan note proceeds will be used to repay GBP250,00 of Angus's outstanding GBP600,000 loan note issued in October 2019 and led by Riverfort Global Opportunities PCC Ltd.
The terms for converting the remaining GBP350,000 of the earlier note has been altered, with new repayment dates set at six equal monthly instalments between 24 May and 24 October 2020. Should Angus opt against paying the amount due at each date then the amount becomes convertible at any time as per the terms of the original notes or are repayable at final maturity. Aside from this, no amount of the earlier note can be converted.
A total of 15.0 million warrants have been granted the the noteholders at a 1 pence per share strike price in exchange for waiving rights under the notes. In addition, no further advances will be available to be drawn down by Angus under the earlier note.
Managing Director George Lucan said: "Due to Covid-19 we face an unprecedented situation which makes a variable price and freely convertible instrument exceptionally difficult for the market to price. For the moment, we are very pleased to have secured GBP1.4 million of new core capital for the company at a time when few can have confidence that equity capital markets will be open for fundraising for the foreseeable future.
"This issuance is not to meet any particular identified cash need but is first and foremost one of prudence with the aim of strengthening the company's capital base ensuring we are able to meet any unforeseen challenges that lie ahead. The funds will be primarily used to reduce any impact from the Riverfort Global Opportunities PCC Ltd facility, now only GBP350,000, and to assist and support the broader reconnection programme at the Saltfleetby gas field and the more involved planning process at Balcombe.
"We shall be updating shareholders on the details of recent progress made at all of our sites at the end of April."
By Anna Farley; [email protected]
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