February 17, 2021
February 17 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
PetroNeft Resources plc
(“PetroNeft” or the “Group” or the “Company”)
$2.9m Convertible Loan Facility
PetroNeft (AIM: PTR) an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67, is pleased to provide a financing update.
Highlights
Loan facility
PetroNeft has entered into a convertible loan facility of US$2.9 million with a group of thirteen lenders that matures in March 2023.
The loan facility will be used for general corporate and ongoing operational purposes and carries an interest rate of 8% above the base rate of the Bank of England. Lenders can elect at any time to convert up to 75% of the outstanding loan to shares at a conversion price of stg£0.02 in year 1 and stg£0.025 in year 2.
The funding secured by the Company will support our key operational priorities which are expected to deliver considerable news flow in the near to medium term, these priorities include:
The loan is being provided by a group of thirteen investors. Five of the investors are related parties (as defined in the AIM Rules and Euronext Growth Market Rules). Details of the amounts being provided by the related parties are outlined in the table below. Accordingly, Daria Shaftelskaya and Domenic Anthony Sacca, acting as Independent Directors, having consulted the Company's nominated advisor and Euronext Growth Market adviser, consider the terms of the loan facility to be fair and reasonable insofar as the Company's shareholders are concerned.
Related Party Lender |
Amount provided US$ |
Natlata Partners Ltd |
550,000 |
ADM Consulting FZE (Alastair McBain) |
550,000 |
David Golder |
26,328 |
David Sturt |
300,482 |
Pavel Tetyakov |
118,209 |
David Sturt, CEO of PetroNeft Resources plc, commented:
“We are pleased with this fundraising which includes participation by new investors and demonstrates the continued support from our larger shareholders as we continue to rebuild value in the business.
This two-year facility provides additional financing head room to the Company and allows management to further focus on operations as we continue to improve the performance of our assets and deliver value to our shareholders. Not only does this give greater security, it allows management to further focus on development and operations.”
For further information, contact:
David Sturt, CEO, PetroNeft Resources plc |
+44 7903 869 608 |
John Frain/Caroline Pearson, Davy (NOMAD and Broker) |
+353 1 679 6363 |
Joe Heron /Douglas Keatinge, Murray Consultants |
+353 1 498 0300 |