Business
Investment, Financing and Debt Restructuring
Investment, Financing and Debt Restructuring.
About this update from Adm Energy Plc
[{"type":"text","content":"\n\n \n \n26 June 2024\n \n \nADM Energy PLC\n(\"ADM\" or the \"Company\")\n \nUS Oil and Gas Investment\nFinancing and Debt Conversion\n \n \nADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resource investing company, is pleased to announce the investment in Vega Oil and Gas, LLC (\"Vega\"), a Texas Limited Liability Company with assets in Moore County, Texas, by ADM Energy (USA), Inc., a wholly owned subsidiary of the Company (\"ADM USA\"). The Company further announces that ADM USA has entered into a financing agreement for US$600,000 with OFX Holdings, LLC, (\"OFXH\") a substantial shareholder of the Company; and ADM Energy PLC entered into debt conversion agreements, totalling £532,752.\nHighlights:\n· New investment by way of an acquisition of 100% of the membership interest (equity) of Vega with an interest in three wells in Moore County, Texas with an average Net Revenue Interest of approximately 80%. The transaction is being funded by a US$150,000 capital commitment by ADM USA, a US$100,000 borrowing facility from a private, third-party US lender and the issuance of 20 million, 5-year warrants in the Company with an exercise price of 1.0 pence.\n· Financing agreement with OFXH, a substantial shareholder of the Company, providing for up to US$600,000 in financing to ADM USA of which US$225,000 has already been received pursuant to a loan with an interest rate of 12.0% per annum (the \"Initial Advance\").\n· The use of proceeds of the Initial Advance are as follows:\no US$80,000 advanced from ADM USA to the Company; and\no US$145,000 to fund investments and capital contributions by ADM USA in Vega or other assets.\n· Debt-for-Equity conversion agreements for a total of £532,752 with OFXH, Ventura Energy Advisors, LLC (\"Ventura\") and Catalyse Capital Ltd (\"Catalyse\") resulting in an aggregate corporate debt reduction of £532,752.\nVega Oil and Gas Investment\nThe Company is pleased to announce the investment by way of an acquisition of 100% of the equity interest of Vega with the associated economic interest in certain wells (the \"Vega Wells\") as highlighted in Table 1.0 below with an effective date of 1 June 2024:\n \n \n\n\n\n\n \n\n\nSneed 3 & 4 Consol...