3rd Apr 2014 09:51
LONDON (Alliance News) - Kea Petroleum PLC Thursday said Darwin Strategic Ltd is to convert GBP200,000 of its convertible loan notes into shares.
The New Zealand-focused oil and gas company said Darwin Strategic is converting the loan notes at 1.952975 pence per share.
About 10.2 million shares will be issued to Darwin. They are expected to begin trading on AIM on April 9.
Kea will have about 749.7 million shares in issue after Darwin's shares are admitted to AIM.
On January 10 Kea said it had made an agreement to issue up to GBP1.2 million of convertible loan notes to Darwin. Darwin also provided Kea with an equity finance facility of up to GBP5.0 million.
Darwin Strategic was founded in November 2009 with the aim of providing funding to AIM-listed companies.
With traditional sources of credit drying up in the midst of the financial crisis, the door was open to alternative lenders, such as Darwin, which sought to capitalise on the banking sector's weakness and reluctance to lend.
Kea shares were Thursday quoted at 3.20 pence, up 11.3%.
By Samuel Agini; [email protected]; @samuelagini
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