TIDMCEG
RNS Number : 4525R
Challenger Energy Group PLC
27 October 2023
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation ("MAR") (EU) No. 596/2014, as incorporated into UK law
by the European Union (Withdrawal) Act 2018. Upon the publication
of this announcement, this inside information is now considered to
be in the public domain.
27 October 2023
Challenger Energy Group PLC
("Challenger Energy" or the "Company")
Short-term conventional bridge loan to fully repay and cancel
the
previously advised convertible loan note funding facility
Challenger Energy (AIM: CEG) provides the following update in
relation to its financing arrangements:
-- The Company has secured a short-term bridge loan of
GBP346,500 (the "Bridge Loan"), the proceeds of which will be
applied to immediately redeem in full the drawn and unconverted
balance of the previously advised convertible loan note funding
facility (the "Funding Facility"), and thereafter permanently
cancel that Funding Facility.
-- In parallel, the holder of currently issued convertible notes
under the Funding Facility has issued a conversion notice in
relation to a small portion ( GBP55,000) of the notes on issue,
which, in accordance with their terms, will convert by agreement
into 100 million new ordinary shares of the Company ("New
Conversion Shares").
-- The net effect will be that the Company will issue the
Conversion Shares, receive GBP346,500 by way of proceeds from the
Bridge Loan, immediately apply those proceeds to fully redeem the
remaining balance of convertible notes issued under the Funding
Facility, and thereafter permanently cancel the balance of the
Funding Facility.
-- Key terms of the Bridge Loan are:
-- a 12% per annum coupon, accruing monthly;
-- a maximum term of 6 months, but with a proviso that the
Bridge Loan will be repaid earlier from proceeds received by the
Company from either (i) completion of the Cory Moruga asset sale
transaction in Trinidad, or (ii) completion of a farm-out of its
assets in Uruguay; and
-- the Bridge Loan is unsecured.
-- The Company will issue warrants to the provider of the Bridge
Loan, valid for 36 months, which will entitle the holder of the
warrants to subscribe for 250 million ordinary shares in the
Company, at an exercise of 0.1p per share, being a premium of
approximately 100% to the current share price.
Eytan Uliel, Chief Executive Officer, said:
"Eight weeks ago, we secured a convertible note funding facility
for up to GBP3.3 million. As we explained then, our immediate
funding requirement was relatively minimal, in that we were seeking
to bridge a short period of time until receipt of expected cash
inflows. We thus drew only a small portion of that facility,
although we saw value in putting a much larger line of funding in
place, in case it was needed it in the future.
However, given the progress in seeing those expected cash
inflows in the required timeframe, we have moved to refinance and
cancel the facility, and replace it with a more "traditional" loan,
with attached warrants.
We will thus continue to have the funds needed to bridge us
through the current period, although we will no longer have a
bigger facility in place to support us beyond that. Today's
transaction will also mean that the item of most concern to our
shareholders about the previous convertible facility - the
potential for future dilution at unknown value from future
conversions and any future facility draw-downs - is removed."
Admission and Total Voting Rights
-- Application will today be made for admission ("Admission") of
the New Conversion Shares to trading on AIM, which are expected to
be admitted on or about 2 November 2023, and it is expected that on
Admission the New Issue Shares will rank pari passu with the
Company's existing ordinary shares.
-- On Admission, the total issued share capital of the Company
will consist of 10,494,066,144 Ordinary Shares. The Company does
not hold any Ordinary Shares in treasury. Therefore, the total
number of voting rights in the Company is 10,494,066,144 and this
figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change in their
interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.
For further information, please contact:
Challenger Energy Group PLC Tel: +44 (0) 1624 647
Eytan Uliel, Chief Executive Officer 882
WH Ireland - Nomad and Joint Broker Tel: +44 (0) 20 7220
Antonio Bossi / Darshan Patel / Isaac 1666
Hooper
Zeus Capital - Joint Broker Tel: +44 (0) 20 3829
Simon Johnson 5000
Gneiss Energy Limited - Financial Tel: +44 (0) 20 3983
Adviser 9263
Jon Fitzpatrick / Paul Weidman / Doug
Rycroft
CAMARCO Tel: +44 (0) 20 3757
Billy Clegg / Hugo Liddy / Sam Morris 4980
Notes to Editors
Challenger Energy is a Caribbean and Americas focused oil and
gas company, with a range of oil production, development,
appraisal, and exploration assets in the region. The Company's
primary assets are located in Uruguay, where the Company holds high
impact offshore exploration licences, and in Trinidad and Tobago,
where the Company has a number of producing fields and
earlier-stage exploration / appraisal projects.
Challenger Energy is quoted on the AIM market of the London
Stock Exchange.
https://www.cegplc.com
ENDS
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