RNS- Announces £1,300,000 Placing20 Jul 2020 08:09
Canadian Overseas Petroleum Limited
Announces £1,300,000 Placing & Successful Shares For Debt Proposal
Calgary, Canada & London, United Kingdom, July 20, 2020 - Canadian Overseas Petroleum Limited ("COPL" or the "Company") (XOP: CSE) & (COPL: LSE), an international oil and gas exploration and development company focused on sub-Sahara Africa, today announces that:
· COPL has entered into agreements with two institutional investors and two high net worth private investors to raise gross proceeds of £1,300,000 in a non-brokered private placement (the "Placing") at a price of 0.3 pence per common share (the "Placing Price"); and,
· The Company has successfully agreed with creditors for the previously announced Debt Exchange which will result in COPL repaying approximately US$1.6m of historic debt.
The net proceeds from the Placing will be used for ongoing general and administrative costs of the Company and the costs of professional advisers and service providers that are not eligible for the Debt Exchange. Completion of these transactions will improve the Company's working capital position as it works to conclude definitive agreements for the Company's Nigerian OPL 226 project as disclosed on July 10, 2020.
The Placing and Debt Exchange are conditional on admission of trading on the London Stock Exchange of: (i) 433,333,334 common shares to be issued pursuant to the Placing; and, (ii) up to 188,570,475 common shares to be issued pursuant to the Debt Exchange. Application has been made to the United Kingdom's Financial Conduct Authority (the "FCA") for up to 621,903,809 common shares of nil par value (the "New Shares") at 0.3 Pence per common share (the "Placing Price") to be admitted to the standard listing segment of the Official List maintained by the FCA, and to the London Stock Exchange plc (the "London Stock Exchange") for such New Shares to be admitted to trading on the London Stock Exchange's main market for listed securities ("Admission"). It is expected that Admission will be become effective and that unconditional dealings in the New Shares will commence on or around July 23, 2020.
The common shares to be issued pursuant to the Debt Exchange were outlined in the Company's Prospectus approved by the FCA on 26 June 2020. The Company reserved a total of 411,326,189 common shares in the capital of the Company (of which 252,512,157 common shares were issued on July 15, 2020) to be allocated for the settlement of debts to its unsecured creditors, accrued unpaid wages to its employees, and the secured Promissory Note due to its CEO at the Placing Price (the "Debt Exchange").
There are no fees or commissions payable pursuant to the Debt Exchange which enables the Company to successfully settle approximately US$1.6m of debt. COPL will pay a finder's fee of 7.5% cash and 32,500,000 common share purchase warrants in relation to the Placing. The finder's warrants are exercisable into one c
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