By Ian Walker
Shares of Corcel rose as much as 25% on Monday after the company said that it has agreed to a convertible loan worth up to 10 million pounds ($12.4 million) that will provide funding for continuing operations in Angola and business development in Brazil and elsewhere.
Shares at 1300 GMT were up 0.07 pence, or 17%, at 0.52 pence, having peaked at 0.55 pence earlier in the session.
The upstream oil-and-gas development company has agreed on the loan with Extraction Srl, a natural-resource investment group, of which Corcel Chairman Antoine Karam owns 45%.
Under the terms of the loan, the company can draw GBP1 million next month and a further GBP1 million in January. The rest can be drawn over three years.
The company will issue an initial 1,000 convertible loan notes of GBP1,000 each around Oct. 1, and then a further GBP1 million worth of notes around Jan. 1. Further drawdowns of the loan will be made on mutually agreed terms between the company and lender.
“With this instrument in place, the company now has a cost-effective long-term facility it can access without having to consider more dilutive and expensive sources of capital on offer,” Karam said.
Write to Ian Walker at [email protected]
Read the full article here
