12:17 Thu 02 Sep 2021
Lekoil Limited - Convertible Facility Agreement
2 September 2021
Lekoil Limited
("LEKOIL" or the "Company")
Convertible Facility Agreement
LEKOIL (AIM: LEK), the oil and gas exploration and production company with a focus on
The entry into the CFA should be read in conjunction with the Company's Corporate and Operational Update issued on
The key terms of the CFA are:
Amount: |
Up to |
Use of proceeds: |
For payment of corporate costs (regulatory and compliance and legal fees) and for general corporate purposes as approved by the Board and the Lenders. |
Availability: |
|
Term: |
6 months. |
Repayment: |
Principal and interest to be repaid from proceeds of capital raise and/or monies recovered from CEO Loan. Repayment immediately due on a change of control of the Company. No conversion before expiry of the Term. |
Conversion right: |
In the event of non-payment at the expiry of the Term, Lenders have the option to convert the outstanding amounts into ordinary shares of the Company at the Conversion Price. |
Conversion Price: |
|
Interest Rate: |
10% per annum. |
Shareholder approval/Security for Repayment: |
At the Company's upcoming AGM, the Company will seek shareholder approval for the issuance of the shares pursuant to the Conversion (if required). In the event shareholder approval is not obtained, the Lenders will be entitled to an assignment by way of security of the CEO Loan. |
Given that
"As set out in our Corporate and Operational Update released earlier today, I expect that in the medium term the Company will be well funded to protect and pursue the recovery of its investment in Lekoil Nigeria. In the short term, the Convertible Facility Agreement will allow the Company to fund its day-to-day operations and I would like to thank the lenders for making the funds available. I would also encourage our shareholders to participate in the envisaged capital raise so that the Company can repay the CFA and allow the Company to pursue the recovery of its investment in Lekoil Nigeria."
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
For further information, please visit www.lekoilplc.com or contact:
|
|
SP Angel Corporate Finance LLP (Nominated Adviser and Joint Broker) |
+44 20 3470 0470 |
Tennyson Securities (Joint Broker) |
+44 20 7186 9030 |
|
|
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of...
FOR OUR FULL DISCLAIMER CLICK HERE