LONDON (Alliance News) - MX Oil PLC on Wednesday said it is in the process of structuring secured, convertible loan notes to raise up to GBP4.0 million.
The money will be raised through a series of fundraising rounds to be drawn down in tranches over the next year.
The oil and gas investing company said it expects to conclude an initial subscription for about GBP1.3 million of loan notes shortly.
MX Oil expects "certain directors" to participate in the subscription.
The company intends to use the funds raised to meet cash calls in relation to its investment in Nigeria.
The loan notes are expected to pay a coupon of 12% per annum and will be convertible into equity at 4.5 pence per share or or at the same price per share of any issue of equity prior to the redemption date of the loan notes.
The instruments will be redeemable, together with all interest due, on the first anniversary of issue.
Shares in MX Oil were up 17% at 2.43 pence on Wednesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.