Independent Oil & Gas (LON:IOG) has revealed that it will have sufficient funds until late November following agreement with its lender, Darwin Strategic.
The company told investors that Darwin has now sold all its shareholdings, amounting to 2.1mln shares, which has resulted in the outstanding debt owed by IOG to reduce to £245,781 from £322,580.
Furthermore, Darwin will convert its remaining debt into IOG shares at a conversion price of 3.77p (which equates to 85% of IOG’s lowest three weighted average prices in the past ten days). It means Darwin will receive 6.5mln new IOG shares.
Mark Routh, IOG chief executive, said: "It is important for IOG and all its stakeholders that the outstanding liability to Darwin has been extinguished.
“We are grateful that Darwin has allowed their loan to be restructured and extended several times without levying additional interest and fees.
“We look forward to providing a further operational and financial update in due course."
IOG added that as a result of Darwin’s 2.1mln share sale the company has £15,960 of additional working capital.