Ascent Resources plc has raised £600,000 in a placing and restructured its debt with lender Riverfort.
DISCOUNT
The company issued 15,000,000 new ordinary shares of 0.5 pence each to new and existing shareholders, at a price of 4 pence per placing share.
The placing price represents an approximate 5% discount to the closing mid-market price on 30 November 2022 of 4.25 pence.
Additionally, Ascent said it would issue 1,232,500 new ordinary shares of 0.5 pence each to corporate suppliers and international contractors at the placing price for contracted services totalling £49,300.
USES
The company will use the proceeds to pursue its revenue recognition claim against joint venture partner Geoenergo over its Slovenia gas assets, fund near-term business development, and for general and administrative expenses.
DEBT EXTENSION
Ascent added that it had extended the maturity date of its loan also to advance its revenue recognition claim against its JV partner to a binding conclusion as well as wider corporate initiatives.
The company’s only lender RiverFort, has agreed to restructure Ascent’s debts of £270,000 plus the 8% coupon due to mature on 31 December 2022, as well as the £270,020 due for repayment in six monthly £45,003 cash payments from mid-February to July 2023.
Ascent will now repay £50,000 of the outstanding £561,620 with £25,000 in cash plus £25,000 in 625,000 new shares in the company valued at the placing price of 4 pence.
The remaining balance of £511,620 will incur a coupon of 8% and be paid in six equal cash instalments of £92,091.60 every month from 14 September 2023 with final payment on 14 February 2024.
Ascent will in addition extend the expiry date of Riverfort’s 3.33 million warrants exercisable over three years at 7.5 pence and the 3.6 million warrants exercisable over two years at 5 pence issued in December 2021.
Both warrants shall now expire on 31 December 2025.
Ascent will also issue Riverfort with 4.6 million new warrants on the same terms as the placing warrants.
Following admission of the placing, consultancy and debt shares, the company will have 152,418,015 ordinary shares in issue, none of which will be held in treasury.