LONDON (Alliance News) - RockRose Energy PLC said Monday it has withdrawn its debt offer and share offer to Independent Oil & Gas PLC following the Independent O&G share placing earlier.
Independent O&G raised GBP16.6 million through a placing of 165.8 million shares at 10 pence per share to fund the drilling of an appraisal well. Alongside the fundraising, the company said it also intends to restructure its arrangements with London Oil & Gas Ltd, which is currently in administration.
In March, RockRose offered to buy Independent O&G's debt owed to London Oil & Gas for GBP40.0 million in cash.
Independent O&G announced Monday, the 12 months of GBP7.1 million debt service due to London Oil & Gas over the course of 2019 will be rescheduled and GBP1.6 million of interest due from London Oil & Gas's existing debt will be converted into shares.
Furthermore, the maturity date on warrants to subscribe for 7.5 million shares at a strike price of 9p per share and 5.8 million shares at a strike price of 11.9p per share will be extended by 12 months. The warrants were granted to London Oil & Gas in 2015 as part of a loan agreement.
As a result, RockRose has withdrawn its offer to purchase the debt.
Before offering to buy Independent O&G's debt, RockRose also made a formal approach to possibly buy Independent O&G in a GBP27 million cash deal. The deal was rejected by Independent O&G.
The possible offer was priced at 20 pence per share, double the price of Monday's share placing, and valued IOG at GBP26.6 million. RockRose explained it would fund any possible deal through its existing cash resources.
RockRose said: "The board of RockRose continues to believe that RockRose's offer to both equity and debt holders in IOG was compelling and in the interests of both RockRose shareholders and the LCF mini bondholders. The board of RockRose fails to understand how the proposed fundraise, alteration of debt terms and the rejection of the possible IOG share offer and firm IOG debt offer are in the best interests of the IOG shareholders and LCF mini bond holders, respectively."
Shares in RockRose Energy are currently suspended, last quoted at 815p each. Independent O&G closed down 31% at 11.90p.