8th May 2015 07:36
LONDON (Alliance News) - Sirius Petroleum PLC Friday said it has agreed a financing arrangement with family investment office Calvet International Ltd.
The deal comes in the form of a convertible loan facility for up to GBP1.5 million to provide working capital to the company.
The loan has a three-year term and accrues no interest. However, Calvet can convert the loan into new shares.
There is a commitment fee of GBP100,000 per year, equating to GBP300,000 for the full term of the facility, which will be settled in full by the company issuing 30.0 million new shares at a price of one pence each.
Each drawdown on the facility will be subject to a fee, which will also be satisfied by new shares.
Sirius and Calvet have agreed an initial drawdown of GBP200,000, according to the company's statement, which the family office asked to be converted into new shares. The availability of future funds is at Calvet's discretion.
"This facility is separate to any project funding and will allow Sirius to continue due diligence in respect of projects that the company is currently considering," Sirius said.
The company has applied for 70.0 million new shares to begin trading on AIM, due to the commitment fee shares, the drawdown fee and conversion of the initial drawdown into shares. The new shares will be equivalent to about 5.9% of the company's existing equity.
Sirius shares were up 7.3% at 1.10 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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