Slme. Loan info year ending 20119 May 2013 21:46
On 23 March 2010, £81,647 convertible loan notes were issued with a final repayment date of 23 March 2015 (the “2015 Loan Notes”). The 2015 Loan Notes are interest free and unsecured. The note holders have the right to convert any amount of the principal amount of the 2015 Loan Notes at any time within two years from the date of issue into New Ordinary Shares at the exercise price of 20 pence per share. The ordinary shares to be issued on conversion (assuming full conversion) would amount to 408,234 ordinary shares. The 2015 Loan Notes are freely transferable and may be transferred to new note holders who will then be able to exercise the conversion rights attaching to the 2015 Loan Notes. In the year ended 31 December 2011, £40,515 of the 2015 Loan Notes were converted and 202,573 shares were issued as a result of the conversion.
The net proceeds from the issue of the loan notes have been split between the liability element and an equity component, representing the fair value of the embedded option to convert the liability into equity of the Company.
On 1 July 2011, a £750,000 convertible term loan was issued (the “Term Loan”) divided into two separate tranches of £375,000 each (“Loan A” and “Loan B”). On the re-admission of the Company’s shares to AIM, Loan A loan notes automatically converted into ordinary shares at 22.5p per share, resulting in the issue of 1,666,666 new ordinary shares. The Loan B loan notes are convertible at 35p per share on or before the final redemption date, being two years from the issue date. If not converted the loan notes will be redeemed by a payment of £750,000 on the final repayment date. An interest coupon is payable on the Term Loan notes from the date of issue until the date of redemption or conversion. The coupon is calculated as 10% of the net revenue paid to the Company in respect of its interest in the I-1 Well and is paid upon redemption or conversion as applicable.
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