Angus Energy plc has agreed a £3 million junior debt facility from commodity trading house and the company’s 9.91% shareholder Kemexon Ltd.
BRIDGE FACILITY
The ‘bridge facility’ has an initial term of three months, extendable by paying a 3% roll fee for a further three months.
The debt is priced at SONIA* + 15% and commits the company to issue 150 million warrants, at the previous placement level of 1.65p/share.
Angus expects that revenues from the existing operations and the sidetrack will repay both the senior and junior facilities.
Through a separate agreement, shareholder Aleph Commodities Ltd is acting as arranger of the bridge facility for which it is entitled to an upfront 5% arrangement fee and a further 3% break fee should the facility not roll beyond its initial three-month term.
In return Angus will issue 10,998,719 shares at the 30 day VWAP of 1.36379 pence.
The 3% break fee would be settled in shares at the 30 day VWAP ahead of the repayment date.
Angus will use the funds for the extended drilling operations and initial studies on the development of natural gas and hydrogen storage at Saltfleetby.
LOAN NOTE CONVERSION
The company additionally reported that Knowe Properties Ltd has given notice to convert the £1.4 million convertible loan note from April 2020 plus accrued interest of £52,931 into ordinary shares at 1p each.
Angus is issuing 145,293,100 ordinary shares to Knowe which will subsequently hold 241,777,556 ordinary shares in the company representing 6.73%.
Knowe has been a strategic shareholder since Angus’s IPO in 2016.
On admission, Angus will have 3,590,393,701 ordinary shares in issue, each with one vote. The company holds no ordinary shares in treasury.
*Sterling over night indexed average