Tue, 1st Oct 2019 07:00>
30 September 2019
Amendment to Series B Loan Funding Agreement
Oilex Ltd (the Company) is pleased to advise that it has entered into an amendment agreement to vary the terms of its loan funding facility of A$250,000 (Amendment) entered into on 11 September 2018 (Series B Loan).
Pursuant to the Amendment, the loan repayment date has been extended from 1 October 2019 to 1 April 2020. All other terms remain the same and are extended to 1 April 2020. This includes the issue of new options on commensurate terms with the existing options that will expire on 1 October 2019.
Summary of Key Terms after the Amendment
Term: 1 April 2020
Interest Rate: 5%
Repayments 100% payable at maturity
Options Issued: 60,664,887 options over ordinary shares
Option Exercise Price: A$0.004121 per option
Option Expiry Date: On 1 April 2020
Key Undertakings: Not to dispose of assets having an aggregate value more than A$1 million
Not to incur any financial indebtedness more than A$50,000
Not to incur any aggregate payment or outgoing exceeding A$1 million (except for wages)
Customary additional provisions regarding events of default, undertakings, covenants and representations and warranties remain unchanged.
The options, which if exercised in their entirety, will result in a cash inflow to the Company of A$250,000. The proceeds from the conversion of options will be applied to the outstanding Series B Loan balance, which is fully drawn down.
The issue of the new options is subject to shareholder approval under ASX Listing Rule 7.1 on or before 30 November 2019. Failure to secure shareholder approval will require immediate repayment of the loan principal and accrued interest.
Related Party Transaction
Republic Investment Management Pte Ltd (Republic) makes up all of the Series B Loan balance of $250,000. Republic has a shareholding in the Company of 14.74% and is therefore categorised as a Substantial Shareholder of the Company pursuant to the AIM Rules for Companies (AIM Rules). Accordingly, the entering into the Amendment with Republic is classified as a related party transaction pursuant to the AIM Rules.
The Directors of the Company, having consulted with Strand Hanson Limited, the Company's Nominated Adviser, consider that the terms of the Amendment with Republic are fair and reasonable insofar as the Company's shareholders are concerned.
For and on behalf of Oilex Ltd
Chief Financial Officer Company Secretary
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Tel: +61 8 9485 3200
Tel: +44 20 7399 9427
AIM Nominated Adviser
Strand Hanson Limited
Rory Murphy/Ritchie Balmer
Tel: +44 20 7409 3494
Media Enquires (UK)
Patrick d'Ancona/Chris McMahon
Tel:+ 44 20 7390 0230
Media Enquiries (Aus)
Tel: +618 6160 4900
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