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 £500,000 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
£500,000 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 £400,000.
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 £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
Craig Francis |
Cantor Fitzgerald
Europe
(Nominated Adviser and Joint Broker) |
Tel: +44 20 7894 7000 |
|
|
|
Jon Belliss |
Beaufort Securities
Limited
(Joint Broker) |
Tel: +44 20 7382 8415 |
Frank Buhagiar
Susie Geliher |
St Brides Partners Limited |
Tel: +44 20 7236 1177 |