Business
Financing Agreement with Bergen
Financing Agreement with Bergen.
About this update from Petro Matad Limited
[{"type":"text","content":"\n \nRNS Number : 3978E Petro Matad Limited 08 May 2017 \n\n8 May 2017\nPetro Matad Limited\n(\"Petro Matad\" or the \"Company\")\nPetro Matad secures an up to US$45.2 million investment to fund an ambitious work programme in 2017 and 2018\nHighlights\n· Investment of up to US$45,200,000 by way of a staged private placement and issuance of a convertible instrument allows Petro Matad to undertake an ambitious exploration work program in its 100% owned Block IV and V Production Sharing Contracts in West/Central Mongolia.\n· Staged funding potentially minimises dilution to existing shareholders.\n· Funding includes a number of protections for the Company.\n· Flexible facility that can be terminated in the event that alternate funding sources are used to potentially expand the exploration programme over a longer timeframe.\n· The Investor is a passive financial investor with no board participation rights.\n \nOverview\nThe Company announces that it has entered into a share purchase and convertible securities deed (the \"Agreement\") with Bergen Global Opportunity Fund, LP (the \"Investor\"), an institutional investment fund managed by Bergen Asset Management, LLC, a New York asset management firm, in connection with a staged private placement of up to US$43,200,000 worth of new ordinary shares in the Company (\"Shares\") and a convertible instrument with a nominal value of US$2,000,000.\nUnder the Agreement, the Investor will subscribe for new Shares, in up to 15 tranches, in the amount of US$1,200,000 per approximately monthly tranche (\"Tranche\"). Any Tranche may be increased from US$1,200,000 to up to US$1,500,000 if the Company meets certain agreed metrics, and to up to US$3,000,000 by mutual consent of the Company and the Investor.\nAdditionally, following the extension of the PSC exploration periods for Blocks IV and V by the Mining Resources and Petroleum Authority of Mongolia to 29 July 2019 (or any later date), which is expected to occur shortly, the Investor will invest an additional US$2,000,000 in the Company, by way of a 24-month interest-free unsecured convertible instrument with a nominal value of US$2,000,000, which will be convertible, in whole or in part, into new Shares (the...