Apnea provides 12-month financing for company's working capital needs
By Jennifer Chiou
New York, Oct. 22 - Empyrean Energy plc said it obtained interim financing of £2.5 million via a convertible loan facility with Apnea Holdings Pty Ltd. The availability of the loan will last 12 months, and any drawn amounts will be due by Dec. 31, 2011.
Borrowings will bear interest at 9%.
The facility is to be secured by a fixed and floating charge over the company's assets.
Apnea will have the option to convert the loan into Empyrean ordinary shares at the lower of a conversion rate of 6p per share or at the seven-day volume-weighted average price per share up to the conversion date. The fixed rate represents an 11.52% premium to the company's closing share price on Thursday.
Proceeds will go toward working capital.
Because Thomas Kelly, the commercial director of Empyrean Energy, is associated with Apnea Holdings, the loan is considered a related-party transaction. Kelly holds 4.7% of the company's shares.
Based in London, Empyrean is an oil and natural gas exploration and development company.
| Issuer: | Empyrean Energy plc
|
| Issue: | Convertible loan facility
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| Amount: | £2.5 million
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| Maturity: | 12 months of availability with repayment due by Dec. 31, 2011
|
| Interest: | 9%
|
| Conversion price: | At option of lender into shares at lower of 6p per share or at the seven-day volume-weighted average price per share up to the conversion date
|
| Lender: | Apnea Holdings Pty Ltd.
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| Announcement date: | Oct. 22
|
| Stock symbol: | London: EME
|
| Stock price: | 5.38p at close Oct. 21
|
| Market capitalization: | £11.39 million
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