Shares in oil and gas company Corcel PLC (LSE:CRCL) fell 5% after it revealed that the investment company providing it with funding had secured a £250,000 stake in a debt-to-equity swap.
Around £1 million of the existing loan facility has been drawn out since it was received in September, with the debt being converted to equity at a 79.8% premium to Corcel’s closing price on Friday 15 September.
Extraction Srl, the lender in which Corcel chair Antoine Karam is a 45% shareholder, provided the company with a £10 million loan, with £1 million made available in October followed by £1 million in January.
The other £8 million is potentially available over the three-year term of the agreement.
Corcel said it was speaking with the lender "around the quantum and timing of the next drawdown against the facility".
The funds are to help with its ongoing activities in the Kwanza Basin, Angola.