(Alliance News) - Kibo Energy PLC said on Tuesday it was taking steps in warrant repricing, convertible loan conversion and loan reprofiling to ensure financial stability.
The Galway, Ireland-based company with energy projects in Africa and the UK, said the repricing of its 1.13 billion unexercised warrants will be issued to warrant holders.
Additionally, Kibo Energy's 7.0% convertible loan note instrument issued in January of last year, which has a current value of GBP714,517, will be converted to the company's ordinary shares at a price of 0.14 pence per share. This agreement, Kibo Energy said, demonstrates the "personal support" of directors and management to Kibo's project portfolio and business strategy.
Kibo Energy also reported that the reprofiling of its existing bridge loan, which has a current balance of GBP1.2 million, is due for payment on April 28.
These measures come as the company aims to ensure its "financial and operational stability" to secure the continuation of its development plans. Last week, Kibo Energy had announced that it was advancing the development of all its projects, but expressed concern for the creation of new authorities as it affected the company's "ability to secure project funding and debt financing at project level."
Kibo Energy also noted that the company's strategy largely revolves around the proposed spin-out of a new company, Ultimate Sustainable Energy, to be listed on the AIM Market of the London Stock Exchange through an initial public offering.
The company said that it expects the measures it is taking to "assist with the funding required for the spin-out while incentivising existing long-term shareholders, warrant holders and other stakeholders in having their interests aligned with the company's business development goals."
Chief Executive Officer Louis Coetzee said: "We are pleased to have reached agreement with various stakeholders to implement several measures to ensure the company's financial and operational stability and to secure its development plans. The warrant repricing aims to provide more favourable terms to warrant holders, most of which include existing shareholders, while supporting the company's funding requirement".
Shares were down 13% at 0.085 pence in London on Tuesday afternoon.
By Sabrina Penty; Alliance News reporter
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Kibo Energy (KIBO)