Issue of Zero Coupon Loan Note

About this update from Beacon Energy Plc

[{"type":"text","content":"\n \n31 March 2016\n\nAndalas Energy and Power Plc\n\n(“ADL” or the “Company”)\n\nIssue of Zero Coupon Loan Note\n\nAndalas Energy and Power Plc is pleased to announce it has raised £500,000 (gross) via the issue of a zero coupon loan note (“the Note”). The proceeds of the Note will help fund the costs associated with the ongoing AIM Readmission process, and will also allow the Company to continue with its planning and preparations to drill its well under its farm-in agreement at the Tuba Obi East Technical Assistance Contract (“TOE” or “the Concession”).\n\nThe Company has agreed to issue a zero coupon convertible bond with a par value of £600,000 to institutional and retail investors introduced by Cornhill Capital Limited (‘Cornhill’) and through direct subscriptions with the Company.  The Note will be divided into individual bonds with a par value of £1,000 each, all of which are to be issued on 31 March 2016 on receipt of the full cash proceeds.  Under the terms of the Note, for each £1,000 bond issued, ADL will receive 83.33% of the par value, equivalent to £833.33 per bond.\n\nThe bonds are convertible into new Ordinary Shares in ADL, and the conversion price will be calculated as detailed below.  The Company continues to work towards publishing an admission document and the readmission to trading of the Company’s ordinary shares on AIM and looks forward to providing shareholders with further information in due course.\n\nAndalas CEO, David Whitby, said “We are delighted that both new and existing investors continue to support our efforts to build an Indonesian focussed energy company.  We are continuing to work towards publishing our admission document, as we look to cement the excellent progress that Andalas has made since I joined in June 2015.\n\n“Importantly, these funds will allow us to continue with well planning and permitting on TOE, and just as importantly continue to fund our efforts as we seek to bring ADL back to market as an Indonesian focused energy and power company.”\n\nDetails of the convertible loan notes\n\nThe £600,000 convertible loan note will be divided into individual bonds with a par value of £1,000 each, all of which are to be issued on receipt of the full cash proceeds.  Under the terms of the Note, for each £1,000 bond issued, ADL...

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