(Sharecast News) - South America-focussed hydrocarbon exploration and production company President Energy announced the conversion of debt into equity on Wednesday.
The AIM-traded firm entered into a loan agreement with IYA Global in January 2018, under which IYA provided a loan facility of up to $20.5m (£15.11m) as amended.
It said the balance of the loan as at 1 August was $11.4m, with it due for repayment by 31 December 2024.
The company said IYA, which is beneficially owned by chairman and chief executive officer Peter Levine, had agreed to convert £0.1m of the debt into six million new shares at the closing mid-market price on 5 October of 1.7p each.
"IYA has directed, in accordance with Peter Levine's wishes, that the conversion shares be allotted and issued to the Peter Levine Foundation, a charity in which neither Peter Levine nor any members of his family are beneficially interested, and whose principal objectives are for promoting education and the welfare of the young," the board explained in its statement.
As a result, following the conversion, Peter Levine through his investment vehicles would hold 29.38% of the entire issued share capital of the company, and the foundation would hold 0.29%.
Application had been made for the six million shares to be admitted to trading on AIM, with dealings expected to commence on 11 October.
At 1153 BST, shares in President Energy were up 1.47% at 1.73p.
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