5th Feb 2014 11:23
LONDON (Alliance News) - Ascent Resources PLC Wednesday announced that it has entered into a convertible loan note agreement for up to GBP5 million in funds.
The independent oil and gas exploration and production company said the deal is for funds managed by Henderson Global Investors Ltd and Henderson Alternative Investment Advisor Ltd.
The company said the first GBP2 million of the loan notes will be drawn down in the next few days and used to fund existing project commitments in Slovenia.
Ascent wants to make further progress towards securing the necessary permits required for gas processing facilities and pipelines in Petisovci, Slovenia in advance of the construction phase of the project. The company said that if fully drawn down, the GBP5 million should finance the project through to a stage where it becomes self funding.
The company said that the issue of the loan notes will be by way of subscription for the first GBP2 million followed by six additional tranches of GBP500,000 each.
Henderson holds a 12.6% stake in Ascent going into the convertible loan note deal.
Ascent Resources shares were down 16.7% to 0.750 pence, putting it in the top five AIM losers Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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