Institutional Investment

About this update from Beacon Energy Plc

[{"type":"text","content":"\n \nAndalas Energy and Power Plc\n\n(‘Andalas’, or the ‘Company’)\n\nInstitutional investment\n\nAndalas Energy and Power plc (AIM:ADL) is pleased to announce, following the announcement of our Sumatra-1 project, a placing of 1,277,139,208 new ordinary shares of Nil par value (the “Placing Shares”) to raise £500,000 (before expenses) with new and existing shareholders at an issue price of 0.03915 pence per share.  The placing was led by 1798 Volantis Fund Ltd (“Volantis”) who has subscribed for a total of 1,277,139,208 shares equating to 21.33% of the enlarged share capital of the Company.  Furthermore Volantis has provided the Company with a flexible convertible loan note facility (“facility”) for up to £2,000,000 (subscription price £1,800,000) to provide access to follow-on capital that will be required to develop at least one of its projects through to final investment decision.\n\nHighlights:\n\n\nEquity placing to raise a total of £500,000 at a 10% discount to the closing mid-market share price.\n\nVolantis has also agreed to provide the Company with up to £2,000,000 face value (issue price £1,800,000) of follow-on finance via the issue of a convertible loan note facility: \n\n\nThe first £500,000 draw down is subject to mutual agreement and will be no earlier than 1 March 2018, or such other date as agreed in writing.\n\nThree further drawdowns of £500,000 are also subject to mutual agreement and can be drawn down quarterly thereafter, or such other date as agreed in writing.\n\n\n\nIssue of warrants over 638,569,604 ordinary shares of the Company with 5 year term and a strike price of 0.54375 pence per share, representing a 25% premium to the closing share price.\n\n\nSimon Gorringe, Chief Executive of Andalas Energy & Power, commented, “The funds raised in the placing enable the Company to advance each of its projects.  It is expected that, taken together the proceeds from the equity subscription alongside the convertible loan note would, if drawn down, provide the capital to fund the Company through to the first projects final investment decision, which is the precursor to construction.\n\n“The facility provides the Company with a flexible funding option from our largest shareholder, which is designed to provide back-stop funding, whilst at the same time giving the Co...

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