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Bengal Energy Announces Reliance on Financial Hardship Exemption in Connection with Private Placement and Debt Settlement
Calgary, Alberta--(Newsfile Corp. - February 1, 2021) - Bengal Energy Ltd. (TSX: BNG) (" Ben...
About this update from Bengal Energy Ltd.
[{"type":"text","content":"Bengal Energy Announces Reliance on Financial Hardship Exemption in Connection with Private Placement and Debt SettlementCalgary, Alberta--(Newsfile Corp. - February 1, 2021) - Bengal Energy Ltd. (TSX: BNG) (\"Bengal\" or the \"Company\") is pleased to announce further details with respect to its previously announced non-brokered private placement (\"Private Placement\") of common shares in the capital of the Company (\"Common Shares\") to Texada Capital Management Ltd. (\"Texada\"). Further to the Company's press release of Monday January 25, 2021, Bengal has entered into a subscription agreement with Texada whereby Texada has agreed to subscribe for Common Shares at the price of CAD$0.05 per share for an aggregate subscription amount of CAD$4 million plus the Canadian dollar equivalent of USD$10 million determined based on the daily average CAD$/USD$ foreign exchange rate published by the Bank of Canada (the \"BoC Daily Exchange Rate\") as at the business day immediately prior to the closing of the Private Placement. The closing of the Private Placement is subject to the approval of the Toronto Stock Exchange (\"TSX\"), the approval or deemed approval of the Private Placement by the Australian Foreign Investment Review Board, all closing conditions of the Debt Settlement (as defined below) being satisfied, as well as the satisfaction of certain customary closing conditions. The proceeds from the Private Placement will be used to pay USD$10 million (plus accrued interest, fees and expenses, the \"Settlement Amount\") in settlement of the principal amount (USD$12.369 million as of the date hereof) (the \"Debt Settlement\") owing by Bengal's wholly owned subsidiary Bengal Energy (Australia) Pty Ltd. (\"Bengal Pty\") to Westpac Banking Corporation (\"Westpac\") under its secured credit facility (the \"Facility\"), to reactivate two wells under its Wareena petroleum lease and for general corporate purposes (as further described below). All of Bengal's material oil and gas assets are located onshore Australia and are held and operated through Bengal Pty (an Australian company). Texada has deposited USD$10 million into the escrow trust account of Bengal Pty's Australian legal counsel (as escrow agent) pursuant to the terms of an escrow agreement among Bengal Pty, Westpac, Texada and the escrow agent, which amount will released on clo...