31 Oct 2016 07:00
lmmediate Release 31 October 2016
GLOBAL ENERGY DEVELOPMENT PLC
(the "Company" or "Global")
ACQUISITION OF HKN'S RIGHTS TO LOAN NOTE
Global Energy Development PLC, the petroleum development and production company (AIM: GED), announces that on 28 October 2016 the Company acquired HKN Inc.'s ("HKN") rights of their outstanding principal amount of $2 million in respect of the existing secured bridge financing note agreement ("Loan Note") held with Everest Hill Group Inc. ("Everest") for cash, and as a result Global will be the sole lender of the amended Loan Note with collateral remaining in place and securing the obligation.
Related Party Transaction
Everest is an affiliated company of the Quasha family trusts which also have an interest in Lyford Investments, Inc., ("Lyford") an existing shareholder in Global. HKN, Lyford and parties acting in concert with them are interested in 22,553,406 Global shares, representing approximately 62.45 per cent. of the issued share capital of the Company. By virtue of these holdings, the amendment to the Loan Note constitutes a related party transaction in accordance with Rule 13 of the AIM Rules for Companies. With the exception of Mikel Faulkner, who is a director of HKN, the Company's Directors consider, having consulted with finnCap Ltd, the Company's Nominated Adviser, that the terms of the amended Loan Note are fair and reasonable insofar as the Company's shareholders are concerned.
Enquiries:
Global Energy Development PLC
|
finnCap Ltd
globalenergy@abchurch-group.com |