Business
Fundraise and Further Loan to Core
Fundraise and Further Loan to Core.
About this update from Tern Plc
[{"type":"text","content":"\n \nRNS Number : 6621J Chalkwell Investments PLC 04 July 2011 \n \n\n4 July 2011\n \n Chalkwell Investments plc\n(\"Chalkwell\" or the \"Company\")\n \nIssue of Loan Notes to raise £750,000\nand\nAppointment of Joint Broker\n \nChalkwell is pleased to announce that it has raised £750,000 through the issue of £750,000 nominal of loan notes (the \"Loan Notes\"). Agneash Soft Commodities Plc, a Plus-Quoted investment company, invested £660,000 of the £750,000. \n \nUse of Funds\nThe net proceeds from the issue of the Loan Notes have been used to acquire debt due from Core Oil & Gas Inc. (\"Core\") to Seadrift Management LLC and Wellmaster Exploration and Company LLC (the \"Vendors\"). The final payment to the Vendors amounted to US$1,181,507 relating to the acquisition by Core of Texas Land Office leases 108873 and 108874 covering a portion of Block 818 containing the Mustang Island 818-L field in Kleberg County, Texas (the \"Asset\"). \nAs previously announced, Chalkwell has an option to acquire a 33.3% working interest and a 29.3% net entitlement interest in the Asset from Core, a transaction which would be classified as a reverse take-over under the AIM Rules.\nFollowing this transaction, the loans made by Chalkwell to Core total approximately £2,750,000. The advances are secured on the Asset and under the terms of the debt purchase, Chalkwell has acquired from the Vendors a first lien security interest over the Asset, in addition to its pre-existing second lien security interest. \nThe date by which Chalkwell is able to exercise its option agreement with Core has been extended to 19 August 2011 from 31 July 2011.\nLoan Notes\nThe Loan Notes will be issued in two equal tranches of £375,000 (\"Tranche A\" and \"Tranche B\"). \nTranche A converts automatically on the admission of Chalkwell's ordinary shares to trading on AIM, at a conversion price being the lower of 25p and a discount of 10 per cent to the admission price or the placing price of any fund raising conducted in conjunction with admission. \nTranche B of the Loan Notes has a two year term from the date of issue. Tranche B will pay an annual coupon equivalent to 10 per cent of the revenues generated by the Company attributable to the I-1 well (located in the Mustang Island field) until such time as they are converted...