1st Dec 2020 11:39
(Alliance News) - Ascent Resources PLC on Tuesday said it has secured a new GBP500,000 loan facility arranged and managed by UK-based investment companies Align Research Ltd and RiverFort Global Opportunities PCC Ltd.
The loan facility provides for the loan to be drawn down in four tranches of GBP125,000 each on the first business day of January, February, March and April 2021, respectively.
The onshore energy and natural resources company can repay the loan, plus a fixed coupon of 8%, in full either in cash or in shares at 7.5 pence per share, which is a 41.5% premium to the closing bid price on November 30 on the repayment date of December 31, 2021.
As part of the loan facility, Ascent said it will issue a total of 6.7 million warrants to the lenders, which are exercisable by paying a cash price of 7.5 pence per warrant share, "or at the future placing price of any subsequent fundraise during the first 12 months of the warrants being issued if lower than 7.5 pence." The warrants expire three years from the signing of the loan agreement.
Chief Executive Andrew Dennan said: "We are pleased to have secured this flexible funding solution as we continue to progress our discussions in Slovenia alongside our growth initiatives across Cuba and multiple broader special situations. This is an important time for Ascent and this funding will help facilitate those key workstreams as we look to progress activities right across the portfolio."
Shares in Ascent were up 7.2% at 5.95 pence in London on Tuesday.
By Zoe Wickens; [email protected]
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