Andalas raises funds via private placement, convertible loan note
Tuesday, November 28 2017 - 01:05 AM WIB
British energy company Andalas Energy and Power plc announced on Monday it has raised 500,000 pounds via private placement to help finance its gas to power projects in Indonesia?s Sumatra region.
The company said in a statement it has placed 1.28 billion of new ordinary shares, or 21.33 percent of enlarged capital with Volantis Fund Ltd.
Andalas said that Volantis has also provided the company with a flexible convertible loan note facility for up to 2 million pounds to provide access to follow-on capital that will be required to develop at least one of its projects through to final investment decision.
Simon Gorringe, Chief Executive of Andalas Energy & Power, commented, ?The funds raised in the placing enable the company to advance each of its projects. It is expected that, taken together the proceeds from the equity subscription alongside the convertible loan note would, if drawn down, provide the capital to fund the company through to the first projects final investment decision, which is the precursor to construction.
?The facility provides the company with a flexible funding option from our largest shareholder, which is designed to provide back-stop funding, whilst at the same time giving the company the option to enter into alternative funding options, for example at project level, that are potentially more accretive to all shareholders, including Volantis.?
Elsewhere, Andalas said it also issued warrants over 638,569,604 ordinary shares of the company with 5-year term and a strike price of 0.054375 pence per share, representing a 25 percent premium to the closing share price. The warrant holder has also been granted the right to participate in any future placings in proportion to their unexercised warrant holding.
Andalas said the proceeds of the placing will be used to provide additional working capital and project development capital to advance Andalas? portfolio of wellhead power plant projects in Sumatra.
Application has been made to the London Stock Exchange for admission of the placing shares to trading on AIM and it is expected that admission will occur and that trading in the placing shares will commence at 8.00 am on 30 November 2017. The placing shares will rank pari passu in all respects with the company's existing issued ordinary shares.
Editing by Reiner Simanjuntak