ANGS25 Oct 2019 11:33
Accordingly, to meet the additional cash requirement identified by the Company's decommissioning review above and in taking pre-emptive action, the Company has today entered into a GBP1.5 million Convertible Loan Note facility led by Riverfort Global Opportunities PCC Limited (the "Loan Note"). GBP1 million of this facility will be drawn down immediately and the net proceeds of GBP897,500 will be applied as to GBP650,000 directly to the above mentioned designated abandonment reserve account for Brockham and Lidsey with the balance of GBP247,500 to be retained for the time being to explore third party credit insurance or other surety on the Company's prospective interest in the Saltfleetby Gas Field and any other potential future assets.
The Loan Note carries no interest and allows for conversion of amounts drawn down at the option of the holder at the lower of a 7.5% discount to the average of the 3 lowest daily Volume Weighted Prices ("VWAP") (over the previous 10 days) into shares in Angus Energy or, up to a maximum of 50% of any tranche, at a price equivalent to 130% of the 5 day VWAP prior to drawdown of any tranche. Absent conversion, amounts must be repaid after 12 months. Up to 20% of the outstanding principal may be converted into shares in Angus Energy before 31 December 2019.
The Loan Note carries a commitment fee of 3.5% for a two year term of the full GBP1.5m payable in full at outset together with an implementation fee of 5% of the drawn down amount. The remaining GBP500,000 balance of the facility may be drawn down, subject to material adverse change and liquidity restrictions equally on 31 March and 30 June 2020
The facility carries warrants equal to 20% of the full facility amount of GBP1.5 million.
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