Sefton Jumps After Entering Revised Deal With Hawker, Securing Loan Extension (ALLISS) Fri, 16th Jan 2015 16:39
LONDON (Alliance News) - Sefton Resources Inc saw its shares rise by nearly half on Friday after it said it has negotiated a "significantly revised" transaction and entered into a share purchase agreement with Hawker Energy Inc in relation to the refinancing and potential restructuring of Sefton's wholly owned subsidiary, TEG USA Inc and the proposed joint venture with Hawker on the Tapia field in California.
As a result of the revised deal, Sefton has secured an extension to a loan for Hawker after that subsidiary missed payments that were due in December.
Sefton shares were up 49.3% to 0.0896 pence per share on Friday afternoon.
Hawker Energy is a subsidiary of Sara Creek Gold Corp and Sefton, and in December, Hawker failed to make its final repayment in relation to a forbearance agreement with the Bank of the West.
In July, Sefton organised for Hawker to enter into the forbearance agreement with the bank to help it deal with its financing woes after a troubling year. The deal saw the subsidiary's existing loan expanded to USD1.5 million from USD1.0 million.
Forebearance is an agreement between a lender and a borrower to delay foreclosure.
The deal was also aimed at giving Hawker the ability to complete a joint venture for the Tapia field in California, which would have seen it acquire an 80% interest in the asset through the joint venture vehicle, which was due to be completed in the third quarter of 2014.
The full and final payment of the loan from the Bank of the West was due on December 1, 2014 but Hawker informed Sefton it had not obtained the financing needed to acquire a stake in Tapia LLC, the joint venture company for the Tapia field, and therefore it was not in a position to make payment to the bank.
On Friday, Sefton said it had negotiated a significantly revised transaction and entered into a share purchase agreement with Hawker, whereby Hawker will fully acquire TEG USA. The proposition is subject to shareholder approval.
If the deal is approved, Hawker will assume all liabilities of TEG USA and will issue 3 million Hawker shares to Sefton. The company said the current mid price of Hawker shares is around USD0.0625 per share, giving a value of around USD187,500.
Hawker will also issue Sefton with 5 million share purchase warrants, giving Sefton the option to acquire further shares at a strike price of USD0.25 per share within a five year period.
As a result of the deal, Hawker will advance an additional USD350,000 to TEG USA under an existing subordinated loan facility, which now totals USD1.9 million, and the Bank of the West has agreed to extend the loan until December 31, 2015, said Sefton.
By Joshua Warner; email@example.com; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
I thought Ser was dead and buried as im sure most did, a yes vote which imo is a formality gives Ser and its directors an opportunity to 1,raise funds and get Kansas up and running or 2 prime t/o target. I reckon the latter. yes tapia will be gone but so will the debt associated with it.
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