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Grove Energy Limited - US$ 15,000,000 Underwritten Financing of Notes Convertible Into Common Shares at C$ 1.00
Grove Energy Limited - US$ 15,000,000 Underwritten Financing of Notes Convertible Into Common Shares at C$ 1.00.
About this update from Surge Copper Corp.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, March 10 /CNW/ - Grove Energy Limited (the \"Company\") \n(TSX-V & AIM: GRV), the oil and gas exploration company with its primary\nassets in Europe and the Mediterranean Margin, announces that, subject to due\ndiligence and regulatory approval, it has reached an agreement to issue\nUS$15,000,000 of subordinated convertible notes (the \"Notes\"). The offering\nwill be underwritten by a group of RAB Capital PLC's Energy Funds (\"RAB\") and\nin connection with the placement Grove may pay advisory and underwriting fees,\nin certain circumstances, of up to 3.0 per cent of the principal amount of the\nNotes.\nThe Notes have a maturity of five years; bear an 8.75% annual coupon,\npayable half-yearly; the principal amount of the notes may be converted, at\nthe holder's election, into common shares of the Company at a price of C$1.00\nper share; and may be converted into common shares, at the Company's election\nif the weighted average price of the shares on the TSX Venture Exchange \n(\"TSX-V\") is C$1.70 or greater for a period of 25 consecutive days. Interest\nmay be paid in shares or cash during the first year of the term at the\nCompany's election and in subsequent years at the holder's election. Shares\nissued, if any, in respect of interest will be issued for an amount that\nequates to a 10% discount to the 30-day weighted average price of the shares\non the TSX-V preceding the coupon payment date. The Notes will be subordinate\nto permitted encumbrances including, among others, any banking facilities or\nother debt entered into to develop the Company's properties and will be\nsecured by a general charge over the Company.\nGlenn Whiddon, CEO, commented that: \"This financing will allow Grove to\npursue its exploration and development objectives for the foreseeable future.\nWe are extremely pleased that RAB, a respected investor in the international\nenergy market, is demonstrating its support for our team, property interests\nand strategy and we welcome RAB's continued involvement with Grove.\"\n\nGrove is committed to building a diversified exploration, appraisal and\ndevelopment portfolio of oil and gas assets in Europe and the Mediterranean\nMargin. Grove's principal business strategy is to generate a sustainable cash\nflow as quickly as possible. Grove's assets are in proven hydrocarbon\nprovinces, cl...