Lekoil Ltd - London-based oil and gas exploration and production company with projects focused in Nigeria and West Africa - Shareholder Lekoil Nigeria's CEO Olalekan Akinyanmi granted interim injunction by Grand Court of Cayman Islands to prevent investment agreement between Lekoil and Savannah Energy PLC.
On Monday, both companies signed a convertible facility agreement for Savannah to provide a GBP900,000 loan, repayable on Wednesday and bears 5% per annum interest.
Should Lekoil not pay, Savannah can convert the outstanding amount to 177.1 million new shares in Lekoil at a price of 0.5 pence each.
Savannah will also agree with Lekoil to have unpaid fees settled by the issue of 22.9 million new shares, and both companies have signed an option agreement granting Savannah the option to be assigned the company debt owed to Lekoil by Mayfair Assets & Trusts Ltd, and its associated security related to OPL 310.
Should the option be exercised, Savannah will pay USD1 million to Lekoil.
The injunction by the court prevents Lekoil from issuing or alloting any shares for the convertible facility agreement, option agreement or tripartite agreement with Savannah, effectively preventing the deal
Current stock price: suspended
By Dayo Laniyan; dayolaniyan@alliancenews.com
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