10th Jun 2016 09:29
LONDON (Alliance News) - MX Oil PLC, an AIM-listed oil and gas investing company, on Friday unveiled a move to make it "virtually" free of debt.
In a statement, MX Oil said it has already issued notices for the early redemption of the outstanding balance of secured convertible loan notes it issued in December 2015 and February 2016.
MX Oil said it will repay GBP1.7 million in total, which includes all redemption payments and accrued interest.
Under the terms of the loan notes, some of the investors in the convertibles will receive a total of 9.5 million warrants to subscribe for "such number of ordinary shares which would otherwise have been issued on conversion", with a strike price of 4.5 pence exercisable up until December 17, 2016.
That is designed to compensate holders for the loss of the convertible element of the loan note as a result of early redemption.
"We have decided to use part of the proceeds from our recent fund raising to repay the outstanding balance of convertible loan notes. This will significantly reduce our level of indebtedness, making us virtually debt free," Chief Executive Officer Stefan Olivier said in a statement.
Shares in MX Oil were down 4.6% at 0.906 pence Friday.
By Samuel Agini; [email protected]; @samuelagini
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