Solo Oil Plc - US$5,000,000 Investment Facility
29 June 2020
("Solo" or "the Company")
· Tranched investment structure that allows the Company to have a flexible funding option in place, should it be required, for the planned appraisal programme on its Ntorya gas field in
· Company to immediately draw an initial
· Further to the Company's recent update on its financial position, securing the investment facility further strengthens Solo's optionality regarding its existing natural gas portfolio and its business development work; and
· Structure is beneficial as provides a staged funding facility which can be drawn as required for the work programme and potentially minimises dilution to existing shareholders.
Solo (AIM: SOLO), the AIM investing company targeting attractive production and development opportunities within the European gas market, is pleased to announce the entry into a share subscription deed (the "Subscription Deed") with
Pursuant to the Subscription Deed, in the coming days, the Subscriber will make an investment of
Provided the Company satisfies certain conditions set out in the Subscription Deed, an additional investment of
The proceeds from investment rounds will be used by the Company to fund the planned appraisal programme on its Ntorya gas field in
Commenting on the facility, CEO
"We are pleased to be able to secure an appropriate funding structure that allows the Company maximum flexibility to progress the activity and deliver value for shareholders. Particularly ahead of a major drilling campaign such as that planned for the Chukumbi-1 well in
Each investment under the Subscription Deed will be made by the Subscriber by way of prepayment for Ordinary Shares to be issued, at the Subscriber's request, in single or multiple tranches, within 24 months of the date of the investment (the "Investment Shares"). The number of Ordinary Shares to be issued as settlement for each investment will be determined by dividing the gross subscription amount (or a part thereof) by the average of the five daily volume-weighted average prices during a specified period immediately prior to the selected date of issuance of the Ordinary Shares, rounded down to the next one fiftieth of a pence (the "Subscription Price").
At the First Closing, the Company will issue 9,800,000 Investment Shares to the Subscriber, in consideration of an additional payment of
The Company will also issue to the Subscriber 6,005,681 Ordinary Shares by way of a fee. The Company has applied for admission of these Ordinary Shares to trading on AIM, and admission is expected to become effective at
As between the Company and the Subscriber will have the right, but not the obligation, during the period beginning on the date of First Closing and ending on the date no later than 7 business days after the Company's next annual general meeting, to obtain further investment from any of the Company's directors, shareholders of the Company holding more than 250,000 Ordinary Shares as at today's date and their respective affiliates in an aggregate amount not to exceed
Application will be made to the
Restrictions agreed by the Company
For the duration of the Subscription Deed, the Company has agreed not to undertake certain actions without the Subscriber's written approval (e.g. to change the nature of its business or to incur indebtedness that ranks senior to or pari passu with the present financing).
Further, so long as there are amounts outstanding to the Subscriber, the Company has given certain customary undertakings in respect of its share capital, including not to modify the rights attaching to Ordinary Shares or to reduce its share capital and to ensure that the Company retains sufficient share allotment authorities at all times.
Restrictions agreed by the Subscriber
The Subscriber is contractually precluded from short-selling the Ordinary Shares or undertaking certain other prohibited activities in relation to the Ordinary Shares.
Following the admission to trading on AIM of the 15,805,681 new Ordinary Shares to be issued as noted above, the Company will have 647,509,807 Ordinary Shares in issue with each Ordinary Share carrying the right to one vote. There are no Ordinary Shares currently held in treasury. The total number of voting rights in the Company is therefore 647,509,807 and this figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure Guidance and Transparency Rules.
For further information:
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+44 (0) 20 7440 0642
+44 (0) 20 7409 3494
Buchanan, Financial PR
+44 (0) 20 7466 5000
This information is provided by RNS, the news service of the
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