Orcadian Energy plc has signed a six-month lock-in agreement over 7,049,695 ordinary shares in the company to allow a third-party investment deal.
NEW INVESTORS
Former director Greg Harding and his wife Nora Harding agreed not to sell their 9.35% holding from 23 October for that period of time except in certain limited circumstances.
Orcadian, which needs to repay a £1 million loan to Shell by March 2024, said that a third-party required the lock-in for a separate agreement to buy the balance of the Harding holding’s 456,546 ordinary shares in an off-market deal.
Should Orcadian’s share price exceed certain price parameters during the lock-in period, the third party will pay a further amount per ordinary share for the initial holding.
“We are pleased that this agreement has been signed,” said chief executive Steve Brown.
“We believe it demonstrates the belief shown in the work we are doing to progress the Pilot project, and the potentially significant value of our licences.
“We are working hard to promote the company and have recently welcomed new investors to the company.”