9th Jun 2008 17:13
For immediate release 9 June 2008
LENI GAS & OIL PLC
("The Company")
Additional Listing/Directors' shareholdings
Leni Gas & Oil Plc (AIM: LGO) an oil and gas exploration and development company,
announces that it has today agreed to issue 19 million new Ordinary Shares and 16.3 million new options to Directors, staff and consultants. The new Ordinary Shares will be allotted in three equal tranches over a two year period. The subscription for new options in ordinary shares in the Company is at an exercise price of 10p per share (representing a premium of 16 per cent. to the middle market price per Ordinary Share of 8.625p at the close of business on Friday 6 June 2008, with a term of 5 years from the date of this announcement. The new Ordinary Shares and new options represent 4.8 per cent. and 4.1 per cent. respectively of the existing Ordinary Shares in issue.
The new Ordinary Shares and new options have been issued pursuant to the Company's discretionary bonus scheme and share option scheme as set out in the AiM Admission Document of the Company dated 25 October 2007. The options have been issued to new staff and also to existing Directors in relation to their additional roles and responsibilities within the Group, as part of their remuneration arrangements with the Company. Directors have been allocated shares and options as follows:
|
Director |
Number of Options Issued at 10p per share |
Total number of new Ordinary Shares to be issued |
Total shareholding following the issue of total new Ordinary Shares |
% shareholding |
|
Jeremy Edelman |
2 million |
2 million |
42 million |
10.16 |
|
Donald Strang |
6 million |
9 million |
19 million |
4.60 |
The remaining shares and options are being issued to some 19 members of staff/consultants.
The new Ordinary Shares will be issued in three equal tranches being: today, and each of the next two anniversaries, provide that at the time of each issue the relevant person is continuing to act at least in their existing capacity within the Group. Each of the recipients has undertaken to the Company, save in certain circumstances, only to dispose of any such shares after consulting the board and taking into account any of the Board's requirements for the maintenance of an orderly market. The options will vest on the first and second anniversaries of the date of grant, also subject to each person continuing to act at least in their existing capacity within the Group.
The value of the total number of new Ordinary Shares to be issued based upon the middle market price of 8.625p at the close of business on Friday, 6 June 2008, is £1.638 million, of which some £546,000 will be a charge in the Profit and Loss Account for the current Financial Year. In accordance with IFRS, there will also be a charge for the value of the options, determined as part of the normal year-end procedures. Currently, Directors, staff and consultants take only a small part of their remuneration in the form of cash and the issue of the options and shares as remuneration enables the Group to build an experienced management team whilst also maintaining the Group's cash reserves for the development of its oil and gas assets.
The new Ordinary Shares will when issued rank pari passu with the existing ordinary shares of 0.05p each of the Company ("Ordinary Shares"). Application will be made for admission to AIM for these new Ordinary Shares. Accordingly, a total of 6,333,333 Ordinary Shares have been issued today and it is expected that admission will become effective and that dealings in the New Ordinary Shares will commence on Tuesday 17 June 2008.
Following the issue of these shares, the Company's issued share capital will consist of 400,327,153 Ordinary Shares with voting rights.
The issue of new Ordinary Shares and new options to two Directors, Jeremy Edelman and Donald Strang, is a Related Party Transaction under AiM Rule 13. Accordingly, David Lenigas, who is independent of the transaction for these purposes, considers having consulted the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable in so far as the Company's shareholders are concerned.
Enquiries:
Leni Gas & Oil Plc
David Lenigas Tel: +44 (0)20 7016 5100
Beaumont Cornish
Roland Cornish Tel: +44 (0)20 7628 3396
Rosalind Hill Abrahams Tel: +44 (0)20 7628 3396
ENDS
Related Shares:
CERP.L