Cabot Energy PLC Funding Arrangement and the Issue of New Shares (1475B)
05 June 2019 - 4:00PM
UK Regulatory
TIDMCAB
RNS Number : 1475B
Cabot Energy PLC
05 June 2019
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014. With the publication of this announcement, this
information is now considered to be in the public domain.
5 June 2019
Cabot Energy Plc
("Cabot", the "Group" or the "Company")
Funding Arrangement and the Issue of New Shares
Further to the statement made in its Full Year Results
announcement on 3 June 2019, Cabot Energy Plc (AIM: CAB), the AIM
quoted oil and gas company focussed on creating predictable
production growth in Canada, provides the following funding
update.
The Company is pleased to announce that it has agreed a
financial arrangement with its majority shareholder, High Power
Petroleum LLC ("H2P"), which generates sufficient funding for
working capital purposes until the end of June 2019 (the "Funding
Arrangement").
Under the terms of the Funding Arrangement, H2P will accelerate
the final payment of US$150,000 (approximately GBP118,110) to Cabot
to convert a commitment owed by H2P to the Group, to fund well
stimulation services provided by Blue Spark Energy Inc., an
affiliate of H2P, pursuant to a share purchase agreement between
the parties dated 29 November 2016.
Additionally, H2P has agreed to accept 918,630 new ordinary
shares of 1p each in the capital of the Company ("Ordinary Shares")
at 10 pence per share, consistent with the closing price of the
Ordinary Shares on AIM on 4 June 2019 (the "New Ordinary Shares")
as settlement for outstanding deferred consideration of US$116,666
(approximately GBP91,863) owed to it by Cabot pursuant to a share
purchase agreement between the parties dated 17 December 2017.
Cabot will also issue 524,210 New Ordinary Shares to H2P in
satisfaction of GBP52,421 owed to H2P by Cabot for third-party
London office rental recharges.
Related Party Transaction
H2P is a substantial shareholder in the Company and therefore
the Funding Arrangement between Cabot and H2P constitutes a related
party transaction in accordance with AIM Rule 13. James Dewar,
Rachel Maguire and Paul Lafferty who are independent Directors for
these purposes, having consulted with the Company's Nominated
Adviser, consider the terms of the Funding Arrangement between
Cabot and H2P, as a related party, to be fair and reasonable
insofar as all of Cabot's shareholders are concerned.
Admission of the New Ordinary Shares and Total Voting Rights
Application has been made to London Stock Exchange for 1,442,840
New Ordinary Shares to be admitted to trading on AIM ("Admission").
These shares will rank pari passu with existing Ordinary Shares in
all respects. It is expected that Admission will occur and that
dealings in the new Ordinary Shares will commence at 8.00 a.m. on
10 June 2019.
Following the issue of the New Ordinary Shares, H2P will have an
interest in 20,637,037 Ordinary Shares which represents 61.83 per
cent of the issued share capital of the Company as enlarged by the
issue of the New Ordinary Shares. Following the issue of the New
Ordinary Shares, the Company will have 33,378,590 Ordinary Shares
in issue and no shares are held in treasury.
Accordingly, this figure will be the total number of voting
rights in the Company and may be used by Shareholders as the
denominator for the calculations by which they determine whether
they are required to notify their interest in, or change to their
interest in, the Company under the FCA's Disclosure Guidance and
Transparency Rules.
James Dewar, Interim Non-Executive Chairman, commented: "The
Board appreciates the ongoing support of H2P. The Company continues
to work with the specialist financial advisory firm it has engaged
to source Canada asset-level debt financing to ensure full funding
to commence the 2019 summer work programme and support the future
growth of the Company. Whilst the Board remains confident that the
debt finance discussions will result in a successful outcome for
the Group, no debt commitments have yet been secured. I look
forward to providing Cabot's shareholders with further updates
regarding these discussions as appropriate."
Enquiries:
Cabot Energy Plc +44 (0)20 7469 2900
Scott Aitken, CEO
Petro Mychalkiw, CFO
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
David Hignell, Richard Hail, Richard
Redmayne
GMP FirstEnergy +44 (0)20 7448 0200
Joint Broker
Jonathan Wright
Luther Pendragon +44 (0)20 7618 9100
Financial PR
Harry Chathli, Alexis Gore, Joe Quinlan
Note to Editors:
Cabot Energy Plc (AIM: CAB) is an oil and gas company focussed
on creating predictable production growth in Canada. Comprehensive
information on Cabot and its oil and gas operations, including
press releases, annual reports and interim reports are available
from Cabot's website: www.cabot-energy.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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