3rd Jun 2014 14:25
LONDON (Alliance News) - Shares in Leni Gas & Oil PLC rose Tuesday, after it said it has completed the full equity swap agreement with YA Global Master SPV Ltd, which it said has now agreed to provide a total of GBP1.4 million in cash funding.
In a statement, the company said that as a result, the swap has been terminated.
"This YAGM Equity Swap has proved very successful for Leni Gas & Oil, having provided more than 40% over the original GBP1 million funding envisaged and provided necessary working capital towards the development of the company's Trinidad oil assets," said Chairman David Lenigas in a statement.
Leni Gas & Oil shares were trading at 2.625 pence Tuesday afternoon, up 29%.
In December last year the group entered a GBP1 million placing agreement, and separately a GBP500,000 equity swap agreement with YA Global Master SPV Ltd.
Under the equity swap agreement, Leni Gas & Oil was to receive an additional GBP41,667 per month, for a 12-month period from February 2014, or more per month dependent on the future performance of the company's share price.
Leni Gas & Oil said Tuesday that due to its recent share price performance, payments have been accelerated, resulting in the complete closing of the equity swap.
The company's total cash payments resulting from the original GBP1 million placing and equity swap will now total GBP1.4 million.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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