ADV Advance Energy Plc

 
TIDMADL 
 
1 February 2017 
 
                         Andalas Energy and Power Plc 
 
                         ('Andalas', or the 'Company') 
 
                                   Loan note 
 
Andalas Energy and Power Plc, the AIM traded Indonesian focused energy company 
(AIM: ADL) has issued a GBP500,000 zero coupon loan note ('the Loan Note') which 
will strengthen the Company's working capital position while it continues to 
progress the Company's strategy. 
 
The Loan Note, which has been issued to Sandabel Capital L.P. is secured 
against the assets of the Company and has a par value of GBP500,000 and is 
repayable in cash on or before 28 April 2017 ('the Maturity Date').  No 
interest is payable over the term of the Loan Note, which has been issued at a 
20% discount to par value.  The cash proceeds received from the lender 
following the issue of the Loan Note are therefore GBP400,000. 
 
In the event that the Loan Note is not repaid by the Maturity Date, the Loan 
Note holder has the right to convert into equity at the lower of the prior days 
closing bid price or a 20% discount to the 10 day VWAP in minimum tranches of GBP 
20,000.  For every three conversion shares issued under a conversion notice the 
lender will receive one 18 month warrant with exercise price at a 100% premium 
to the conversion price. 
 
Dave Whitby, CEO of Andalas, said, "Inclusion of our first project in 
Indonesia's national energy plan would be a key value trigger event for 
Andalas, particularly in the eyes of industry participants and/or potential 
finance partners who understand the substantial underlying value in our 
project.  Ahead of this, today's Loan Note strengthens our working capital 
position, without the issue of equity, during an important period for the 
Company.    In the short term, we expect the first project approval to add 
considerable value to Andalas and the loan note provides an excellent means to 
fund the company's further development to this point.  This is an exciting time 
for Andalas as we look to prove our business model, and in the process become a 
leading Indonesian focused energy company." 
 
Appointment of Joint Broker 
 
The securing of the non-dilutive Loan Note for the Company was facilitated by 
Beaufort Securities Limited ('Beaufort'), which has been appointed joint broker 
to the Company.  In conjunction with their appointment Beaufort has been 
granted three tranches of warrants at various premiums to the current share 
price.  Details of the warrants, which expire after a period of five years, are 
provided below: 
 
  * 10,000,000 at 0.20 pence per share; 
  * 8,000,000 at 0.25 pence; 
  * 6,666,666 at 0.30 pence 
 
                                   **ENDS** 
 
For further information, please contact: 
 
David Whitby          Andalas Energy and Power Plc   Tel: +62 21 2783 2316 
 
Sarah Wharry          Cantor Fitzgerald Europe       Tel: +44 20 7894 7000 
Craig Francis         (Nominated Adviser and Joint 
                      Broker) 
 
Jon Belliss           Beaufort Securities Limited    Tel: +44 20 7382 8415 
                      (Joint Broker) 
 
 
Frank Buhagiar        St Brides Partners Limited     Tel: +44 20 7236 1177 
Susie Geliher 
 
 
 
END 
 

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February 01, 2017 02:00 ET (07:00 GMT)

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