Lansdowne Oil & Gas plc (“Lansdowne” or “the Company”) is pleased to confirm that on 25 June 2019 the Company entered into a Loan Agreement for GBP 300,000 (the “Loan”) with Lampe Conway & Co LLC and Brandon Hill Capital Limited (collectively the “Major Shareholders”).
Under the Agreement, which is split equally between the Major Shareholders, Lansdowne is able to draw down funds at its discretion in part or in full. A coupon of 12% per annum will be applied only to those funds drawn by the Company. There are no options, warrants or convertible aspect to the Loan and no fee owed to the Major Shareholders for providing the funds. The Loan is unsecured and repayable on 25 July 2020.
Lampe Conway & Co LLP and Brandon Hill Capital Limited are Significant Shareholders in Lansdowne and therefore the Loan is considered a related party transaction for the purposes of Rule 13 of the AIM Rules. The Directors of Lansdowne consider, having consulted with the Company’s nominated adviser, that the terms of the Loan are fair and reasonable insofar as the Company’s shareholders are concerned.
Steve Boldy, CEO commented:
“Given the significant softening in our share price over the last few months, in part as a result of delays with respect to the award of a new Site Survey Permit over the Barryroe Licence and the delay in delivery of funds due under the farm-out to APEC, the Board concluded a new equity fundraising at this time would not be in the interest of all shareholders. Accordingly, we would like to thank our Major Shareholders for their continued support and believe the terms of the Loan are attractive when compared to a number of other debt financings announced by quoted peers in the junior AIM resource sectors.
“With the statutory public consultation period relating to the Site Survey Period having recently concluded, the Board remains optimistic that upon receipt of regulatory consents and financing, the Well Site Survey Operations will take place in Q3 2019, ahead of the previously outlined drilling campaign.”