PPC.L Regulatory News (PPC)

3 June 2020

PRESIDENT ENERGY PLC 

("President" or the "Company")

PrimaryBid.com Offer

President Energy Plc (AIM: PPC), the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, is pleased to announce, a conditional offer for subscription via PrimaryBid (the "PrimaryBid Offer") of new ordinary shares in the Company ("New Ordinary Shares") at an issue price of 1.85 pence per New Ordinary Share (the "Issue Price"), being a discount of 21.3 per cent to the closing mid-price on 2 June 2020. The Company is also conducting a placing of new Ordinary Shares at the Issue Price (the "Placing"), as well as a significant subscription of shares in the Company by the international commodity trader Trafigura (the "Subscription") and an intended conversion of debt under the existing unsecured loan facility between IYA Global Limited and President (the "Conversion"), as announced on 3 June 2020.

The PrimaryBid Offer and the Placing are conditional on the new Ordinary Shares to be issued pursuant to the PrimaryBid Offer and the Placing being admitted to trading on London Stock Exchange ("Admission"), as well as the passing of the resolutions (the "Resolutions") at the general meeting of the Company. Admission is expected to be take place at 8.00 a.m. on 23 June 2020. The PrimaryBid Offer will not be completed without the Placing also being completed.

The board of directors of the Company (the "Board") is proposing to obtain necessary shareholder approval, where required, to implement the above at a general meeting to be held on 22 June 2020 (the "General Meeting").

The Company will use the funds raised for working capital purposes and to provide the Company with further liquidity to promote its growth.

The net effect of the Subscription and the intended Conversion will be to reduce the net debt of the Group by a minimum of approximately US$10.1 million resulting in a reduction of at least US$16 million in the calendar year to date with third party financial debt (excluding IYA) now only US$3.7 million. The Group is currently scheduled to be free of all remaining financial third-party debt (excluding IYA) by the end of July 2021. Following the successful completion of the Subscription and Conversion, excluding any shares issued under the PrimaryBid Offer, Trafigura will be representing approximately 18.3% and IYA Global Limited will be representing 29.95% of the Company's enlarged share capital.

For more information about the Company, please visit the Issuer Services Page, a service provided by London Stock Exchange, at www.londonstockexchange.com/stock/PPC/president-energy-plc/our-story.

PrimaryBid Offer

The Company values its retail investor base and is therefore pleased to provide private and other investors the opportunity to participate in the PrimaryBid Offer by applying exclusively through the www.PrimaryBid.com platform and the PrimaryBid mobile app available on the Apple App Store and Google Play. PrimaryBid does not charge investors any commission for this service.

The PrimaryBid Offer, via the PrimaryBid.com platform, will be open to individual and institutional investors from 4.31 p.m. to 9 p.m. on 3 June 2020. The PrimaryBid Offer allows both existing and new investors to subscribe for shares alongside and at the same price as Trafigura and IYA. The PrimaryBid Offer may close early if it is oversubscribed.

Subscriptions under the PrimaryBid Offer will be considered by the Company on a "first come, first served" basis, subject to conditions (which are available to view on PrimaryBid.com).

The Company in consultation with PrimaryBid reserves the right to scale back any order at its discretion. The Company and PrimaryBid reserve the right to reject any application for subscription under the Offer without giving any reason for such rejection.

No commission is charged to investors on applications to participate in the PrimaryBid Offer made through PrimaryBid. It is vital to note that once an application for New Ordinary Shares has been made and accepted via PrimaryBid, an application cannot be withdrawn.

Further information on the PrimaryBid Offer is included in the announcement made by the Company at 4.30 p.m. today.

For further information on PrimaryBid.com or the procedure for applications under the PrimaryBid Offer, visit www.PrimaryBid.com or call PrimaryBid.com on +44 20 3026 4750. 

The New Ordinary Shares will be issued free of all liens, charges and encumbrances and will, when issued and fully paid, rank pari passu in all respects with the Company's existing Ordinary Shares.

Details of the retail offer (the "Offer")

The Company highly values its retail investor base which has supported the Company alongside institutional investors over several years. Given the longstanding support of retail shareholders, the Company believes that it is appropriate to provide retail and other interested investors the opportunity to participate in the Offer. The Company is therefore making the Offer available exclusively through PrimaryBid.com.

The Offer is offered under the exemptions against the need for a prospectus allowed under the Prospectus Rules, as defined in section 73A(4) of the FSMA (the "Prospectus Rules"). As such, there is no need for publication of a prospectus pursuant to the Prospectus Rules, or for approval of the same by the Financial Conduct Authority in its capacity as the UK Listing Authority. The Offer is not being made into any person in the United States, Canada, Australia, South Africa, Japan or any other jurisdiction where it would be unlawful to do so (the "Restricted Jurisdiction").

There is a minimum subscription of £100 per investor under the terms of the Offer which is open to existing shareholders and other investors subscribing via PrimaryBid.com. This allocation will be filled on a "first come first served" basis.

For further details please refer to the PrimaryBid.com website at www.PrimaryBid.com. The terms and conditions on which the Offer is made, including the procedure for application and payment for New Ordinary Shares, is available to all persons who register with PrimaryBid.com.

Investors should make their own investigations into the merits of an investment in the Company. Nothing in this announcement amounts to a recommendation to invest in the Company or amounts to investment, taxation or legal advice.

It should be noted that a subscription for New Ordinary Shares and investment in the Company carries a number of risks. Investors should consider the risk factors set out on PrimaryBid.com before making a decision to subscribe for New Ordinary Shares. Investors should take independent advice from a person experienced in advising on investment in securities such as the New Ordinary Shares if they are in any doubt.