Business
Convertible Facility Agreement
Convertible Facility Agreement.
About this update from Fenikso Ltd
[{"type":"text","content":"\n \n \n \n RNS Number : 5610K\n Lekoil Limited\n 02 September 2021\n \n \n \n \n 2 September \n 2021\n \n \n Lekoil Limited\n \n \n (\"LEKOIL\" or the \"Company\")\n \n \n Convertible Facility Agreement \n \n \n LEKOIL (AIM: LEK), the oil and gas exploration and production company with a focus on Nigeria and West Africa, is pleased to announce the entry into a Convertible Facility Agreement (\"CFA\") with Hadron Master Fund (\n \"Hadron\")\n , TDR Enterprises Ltd (a company controlled by Tom Richardson) and a non-related third party (together \"the Lenders\") to allow it to access up to £200,000 for working capital purposes. \n \n \n The entry into the CFA should be read in conjunction with the Company's Corporate and Operational Update issued on 2 September 2021.\n \n \n The key terms of the CFA are:\n \n \n \n \n \n Amount:\n \n \n \n \n Up to £200,000 in total, with Hadron providing up to £100,000 and each of TDR Enterprises Ltd and the third party providing up to £50,000 each.\n \n \n \n \n \n \n Use of proceeds:\n \n \n \n \n For payment of corporate costs (regulatory and compliance and legal fees) and for general corporate purposes as approved by the Board and the Lenders.\n \n \n \n \n \n \n Availability:\n \n \n \n \n £100,000 available immediately, with £100,000 available after 1 October 2021.\n \n \n \n \n \n \n Term:\n \n \n \n \n 6 months.\n \n \n \n \n \n \n Repayment:\n \n \n \n \n Principal and interest to be repaid from proceeds of capital raise and/or monies recovered from CEO Loan. Repayment immediately due on a change of control of the Company. No conversion before expiry of the Term. \n \n \n \n \n \n \n Conversion right:\n \n \n \n \n In the event of non-payment at the expiry of the Term, Lenders have the option to convert the outstanding amounts into ordinary shares of the Company at the Conversion Price.\n \n \n \n \n \n \n Conversion Price:\n \n \n \n \n 0.5 pence.\n \n \n \n \n \n \n Interest Rate:\n \n \n \n \n 10% per annum.\n \n \n \n \n \n \n Shareholder approval/Security for Repayment:\n \n \n \n \n At the Company's upcoming AGM, the Company will seek shareholder approval for the issuance of the shares pursuant to the Conversion (if required). In the event shareholder approval is not obtained, the Lenders will be entitled to an assignment by way of security of the CEO Loan. \n \n ...