EBIOSS Conversion1 Aug 2018 12:37
The outcome of the Stand Still Agreement could be that EBIOSS Energy SE ("EBIOSS"), 'completes a further equity investment in the Company' and maintain their majority holding, and that would then allow the loan conditions to be met.
That is 'as well as' and not 'instead of'
If this was the case then surely that would result in additional dilution?
RNS ......
The equity subscription and capitalisation of interest payments was structured on the basis that unsecured loans were advanced to the Company which automatically convert into Ordinary Shares at 0.6 pence per share on the earlier of (i) 31 July 2018, (ii) the date of completion of the Acquisition and (iii) the date on which the Company's majority shareholder, EBIOSS Energy SE ("EBIOSS"), completes a further equity investment in the Company (the "Conversion Date"). The subscription and capitalisation of interest payments were structured in this way in order to facilitate ongoing conversations with the Company's majority shareholder EBIOSS regarding further investment.
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Under the terms of the loan facility the Company was required to satisfy certain conditions subsequent within 21 days following the date of advance of the initial instalment of the Loan Facility being 30 July 2018. These conditions relate to the implementation of changes to the composition of the Board of Directors of the Company and the formulation and approval of a growth optimisation plan.
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The Company has agreed with the Lenders and the Subscribers to a standstill on the satisfaction of the conditions subsequent and the conversion of the unsecured loans until Friday 3 August 2018.
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The standstill has been arranged to facilitate further discussions with EBIOSS following its recent announcement on 24 July 2018 of the signing of an agreement between EBIOSS, its main Bondholders and Black Toro Capital ("BTC") which includes BTC providing additional funding to EBIOSS.
GLA, NIA, DYOR, & ATJ
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