Contango Holdings PLC Convertible Loan Note Update (1357Y)
12 January 2022 - 6:00PM
UK Regulatory
TIDMCGO
RNS Number : 1357Y
Contango Holdings PLC
12 January 2022
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural
Resources
12 January 2022
Contango Holdings Plc
('Contango' or the 'Company')
Convertible Loan Note Update
Contango Holdings Plc, the London listed natural resource
development company, is pleased to provide an update on the GBP1m
Convertible Loan Note (the "Convertible Loan") announced on 3 June
2021. The Convertible Loan, for which all funds were received at
the time of issuance, carried zero interest and had a fixed
conversion price of 6 pence per share, with a mandatory conversion
to take place on 4 January 2022.
Following the exercise of outstanding warrants prior to their
expiry on 1 November 2021 and an additional capital raise of
GBP2.5m, which was announced on 18 November 2021 and provided the
necessary funds to bring the Company's Lubu Coking Coal Project
into production by the end of Q1 2022, the Company no longer has
sufficient headroom under the Listing Rules to issue all the shares
to satisfy the conversion in full.
Following consultation with the six holders of the Convertible
Loan instruments, the Company is pleased to report that all parties
have unanimously agreed to extend the life of the instruments by a
further six months with no additional charges or penalties. The
revised date for mandatory conversion is therefore 4 July 2022. The
term of the attaching one warrant for every two ordinary shares,
with an exercise price of 8p, remains unchanged.
Carl Esprey, CEO of Contango Holdings, commented:
"I would like to thank the noteholders for their continued
support. All are existing shareholders and participated in the
November 2021 capital raise as well. The funds from the Convertible
Loan, coupled with the November capital raise has ensured we are
fully funded to bring Lubu into production at the end of this
quarter.
"I look forward to updating shareholders in the near term on
further progress."
**ENDS**
For further information, please visit
www.contango-holdings-plc.co.uk or contact:
Contango Holdings plc E: contango@stbridespartners.co.uk
Chief Executive Officer
Carl Esprey
Tavira Securities Limited T: +44 (0)20 7100 5100
Financial Adviser & Broker
Jonathan Evans
St Brides Partners Ltd T: +44 (0)20 7236 1177
Financial PR & Investor Relations
Susie Geliher / Charlotte Page
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END
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