Angus Energy has announced that its 12.5% shareholder, Kemexon Ltd, has agreed to convert its £3 million Junior Bridge Facility, along with interest and fees, into equity in the company at a price of 0.66 pence per share. Kemexon has also committed to a one-year lock-up of those shares. The company is making progress on the global refinancing of its remaining Senior Facility (£6.3 million as of 1 October 2023) and Junior Facility (£6 million), which is expected to close by the end of the year. The maturity date of the £6 million Junior Facility has been extended to 19 January 2024.
Kemexon provided the £3 million Junior Bridge Facility to Angus Energy on 28 March 2023. The company has deemed it preferable to agree to the repayment in equity now, in order to bolster its balance sheet and assist with the refinancing of its other facilities. Kemexon will convert £3 million of principal, along with interest and roll fees, into 516,033,308 Ordinary Shares in the company. This will bring Kemexon's shareholding to 963,795,515 Ordinary Shares, representing 23.26% of the company's total issued share capital. The conversion of the Facility is considered a Related Party Transaction under AIM Rule 13, but the board has deemed the terms of the transaction to be fair and reasonable.
Angus Energy will apply for admission of the new shares to trading on AIM following a General Meeting to increase the authorities of the directors to issue and allot the new shares. It is expected that admission will become effective and dealings in the new shares will commence within seven days of the resolutions necessary to obtain authorities being passed. After the issue of the new shares, the company will have 4,142,893,340 Ordinary Shares in issue.
The company has also exercised its right to extend the maturity date of the £6 million Junior Bridge Facility provided by Aleph Finance Limited by three months to 19 January 2024. This facility can be further extended by three-month periods with the consent of Aleph Finance Limited. The facility benefits from 300 million warrants, which will now have an exercise price of 0.66 pence following the completion of the transaction.
CEO Richard Herbert commented that Kemexon's conversion is a show of support for the company and the reconstituted board. The company will focus on refinancing existing debt in order to pursue expansions at Saltfleetby in production and storage, as well as inorganic opportunities that would deliver asymmetric returns to shareholders.