24th Jul 2015 07:01
LONDON (Alliance News) - Roxi Petroleum PLC Friday said it has reached a deal whereby it has issued shares in the company to certain parties and in return, Roxi will no longer have to pay those parties future royalty payments from its flagship asset in Kazkahstan.
Roxi has reached the agreement with Canamens Ltd and Sector Spesit IV, a sub-fund of Sector Umbrella Trust, to cancel future royalty payments due to them from production from Roxi's BNG asset. In return, Roxi has issued them with a total of 46.6 million shares, which represents a 5% stake in the enlarged issued share capital of Roxi.
"This is an excellent deal for Roxi. On completion, we have removed a future uncapped liability, which may have affected the company's ability to secure traditional debt funding and replaced it with a supportive institutional shareholder," said Chairman Clive Carver.
By Joshua Warner; [email protected]; @JoshAlliance
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