Doriemus Regulatory News (DOR)

11 December 2013 Doriemus Plc ("Doriemus" or the "Company") £1.1 million Funding Doriemus Plc (AIM: DOR) announces that it has completed a funding of £1.1million comprised of a £300,000 placing at 0.2 pence per share and has enteredinto a £800,000 Placing and an Equity Swap Agreement with YA Global Master SPV,Ltd. ("YAGM") at 0.2 pence per share. YAGM has agreed with the Company thatthey will not dispose of any shares acquired under their agreement for aninitial 2 month period. Donald Strang, the Company's Chairman, commented: "This funding will be used to strengthen the Company's balance sheet and usedtowards further farm-ins and other potential investments within the UKconventional oil and gas sector, and in accordance with the Company's statedinvestment strategy." Placing: The Company has raised £300,000, before expenses, by way of a placing ("theFirst Placing Shares") of 150 million new ordinary shares of 0.001 pence each("Placing Shares") at a placing price of 0.2 pence per share. Placing and Equity Swap: YAGM have subscribed for a total of 400 million new ordinary shares (the"Second Placing Shares") in the Company at a price of 0.2p per share ("PlacingPrice") for a gross consideration of £800,000. Of this amount, £400,000 will bepaid back by Doriemus to YAGM under the Equity Swap Agreement from whichDoriemus is expected to receive a base amount of £33,333 per month for a 12month period. The final amount of these monthly funds received by the Companyunder the Equity Swap Agreement will be dependent on the future priceperformance of the Company's ordinary shares, as set out below. Equity Swap Agreement: The Company and YAGM have entered into an equity swap agreement ("the EquitySwap Agreement") pursuant to which the Company will pay YAGM £400,000. Inconsideration for this payment, the Company will receive twelve monthlypayments of £33,333.33, amounting to £400,000 in aggregate, between the date ofadmission of the Placing Shares to trading on AIM and 31 January 2015. Themonthly payments can be adjusted either: (a) up, if 90% of the lowest 10 day VWAP during the relevant one month periodis greater than 0.220p, being a 10% premium to the Placing Price; or (b) down, if 90% of the lowest 10 day VWAP during the relevant one month periodis lower than or equal to 0.220p. This would result in the Company payingadditional funds to YAGM in any relevant one month period. Thus the funds received by the Company in respect of the Swap Shares will bedependent on the future price performance of the Company's ordinary shares. YAGM may elect to terminate the Equity Swap Agreement and accelerate thepayments due under it in certain circumstances. YAGM has agreed that it and its affiliates will refrain from holding any netshort position in respect of the Company's ordinary until the expiry or, ifearlier, termination of the Equity Swap Agreement. The issue of the First Placing Shares and Second Placing Shares and entry intothe Equity Swap Agreement are conditional on admission of the all the PlacingShares to trading on AIM ("Admission"). It is expected that Admission willoccur and that trading in the new ordinary shares will commence on AIM at 8.00am on Tuesday 17 December 2013. These Placing Shares will rank pari passu inall respects with the Company's existing issued ordinary shares. Total Voting Rights: As of today the Company's total issued ordinary share capital is 4,189,999,998ordinary shares of 0.001 pence each. Following Admission of the Placing Shares,the Company's total issued ordinary share capital will comprise of4,739,999,998 ordinary shares of 0.001 pence each. This figure may be used byshareholders in the Company as the denominator for the calculation by whichthey will determine if they are required to notify their interest in, or achange to their interest in, the share capital of the Company under theFinancial Service Authority's Disclosure and Transparency Rules. -END- For further information please contact: Doriemus plc +44 (0) 20 7440 0640 Donald Strang / Hamish Harris Sanlam Securities UK Limited +44 (0) 20 7628 2200 Nominated Adviser and Broker Simon Clements / Virginia Bull