16th May 2014 12:23
LONDON (Alliance News) - Ascent Resources PLC Friday said that it has agreed terms for up to GBP15 million in equity funding, via a subscription for new shares at a price of 0.8 pence each, by Global Power Sources, the company which bought Ascent's former Italian Subsidiary.
Ascent Resources shares were untraded at 0.6 pence Friday afternoon.
The group also proposed the redemption and conversion of convertible loan notes outstanding in the company, all of which are subject to shareholder approval at its Annual General Meeting on June 5, it said.
Ascent had originally called for an AGM for May 30, however postponed it till June 5.
Ascent said the subscription will take place in two tranches, the first resulting in a payment of GBP11.7 million, and the second, a further GBP3.3 million.
It said it will use the subscription proceeds to help restructure the company's balance sheet and speed up development of the Petisovci project.
A condition of the subscription is that up to GBP7.4 million of the proceeds of the first tranche shall be used to fund an offer by the company to holders of the 2013 Convertible Loan Notes to repurchase and cancel up to 50% of the outstanding principal amount of the 2013 Convertible Loan Notes, at a price of 300 pence per GBP1 principal of 2013 Convertible Loan Notes.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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