Proceeds finance work on oil and gas exploration company's projects
By Devika Patel
Knoxville, Tenn., June 28 - Europa Oil & Gas (Holdings) plc said it negotiated a private placement of shares and notes, along with a three-year standby equity distribution agreement. It will raise £7.1 million through the equity portion and $1.6 million through the loan note portion.
The company conditionally raised £2.1 million by selling 16,170,998 ordinary shares at 13p each, a 7.14% discount to the June 27 closing share price of 14p. Insiders will buy 330,770 of the shares.
In addition, the company said it has negotiated a $1.6 million loan note agreement with YA Global Master SPV and Yorkville has agreed to provide a £5 million standby equity distribution agreement.
The 8% loan note will be due in one year and may be prepaid at any time.
The maximum advance that may be requested under the three-year equity agreement is 200% of the average daily trading volume of the shares multiplied by the volume-weighted average price of the shares for each of the 10 trading days prior to the drawdown request. The facility may only be drawn once every 10 days and the shares will be sold at a 5% discount.
Proceeds will be used for work on the company's projects.
Based in London, Europa is an oil and gas exploration, development and production company.
| Issuer: | Europa Oil & Gas (Holdings) plc
|
| Issue: | Ordinary shares, loan note, standby equity distribution agreement
|
| Amount: | £7,102,230, $1.6 million
|
| Warrants: | No
|
| Stock symbol: | London: EOG
|
| Stock price: | 14.49p at close June 28
|
| Market capitalization: | £15.95 million
|
|
|
| Shares
|
| Amount: | £2,102,230
|
| Shares: | 16,170,998
|
| Price: | 13p
|
| Settlement date: | June 28
|
|
|
| Loan note
|
| Amount: | $1.6 million
|
| Maturity: | One year
|
| Coupon: | 8%
|
| Call: | Yes
|
| Investor: | YA Global Master SPV
|
| Pricing date: | June 28
|
|
|
| Equity agreement
|
| Amount: | £5 million
|
| Tenor: | Three years
|
| Price: | 5% discount
|
| Investor: | Yorkville
|
| Pricing date: | June 28
|
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