Business
Convertible Loan Note Facility Agreement
Convertible Loan Note Facility Agreement.
About this update from Corcel Plc
[{"type":"text","content":"\n\n\n \nCorcel PLC\n(\"Corcel\" or the \"Company\")\n \nConvertible Loan Note Facility Agreement\n18 September 23\nCorcel Plc (London AIM: CRCL), the pan Angolan / Brazilian Oil and Gas company, with interests across oil and gas and battery metals, announces the completion of an unsecured convertible loan note facility with Extraction Srl (the \"Lender\"), a natural resource investment group, of which the Company's chairman is a major shareholder, that would potentially extend a total of £10m to the Company, to be drawn down over a three year period (the \"Transaction\"). \nHighlights:\no Agreement with the Lender to fund £1m in October 2023 and £1m in January 2024, with a further £8m to potentially be made available over a three-year term\no Loan proceeds are convertible into new ordinary shares at a fixed price of £0.008, a 79.8% premium from the most recent closing price on 15 September 2023, and bear 12% interest per annum\no Facility provides both short and longer-term funding for ongoing operations in Angola and business development in Brazil and elsewhere \n \nAntoine Karam, Executive Chairman, commented: \"This funding, offered by Extraction Srl and approved by the Corcel Board, will enable the Company to more rapidly drive value creation for shareholders and, equally importantly, is demonstrative of the changes occurring in the business both operationally in Angola and financially in the nature of the funding being utilised. With this instrument in place, the Company now has a cost-effective long-term facility it can access without having to consider more dilutive and expensive sources of capital on offer. With this facility now available to help accelerate our activities, we now await initial results from the drilling of our first oil well in the Kwanza Basin, Angola.\"\nTransaction Summary\nThe Transaction consists of an initial issuance of 1,000 convertible loan notes of £1,000 each on or before 1 October 2023. The notes are to be issued at par and are convertible into new ordinary shares of £0.0001 of Corcel Plc, at a fixed price of £0.008 per share. Conversion may take place beginning 30 days after the initial issuance at the investor's discretion. The notes will attract an interest rate of 12% per annum, accruing daily. Any drawn down...