Andalas Energy and Power Plc Loan Note
February 01 2017 - 2:00AM
UK Regulatory
TIDMADL
1 February 2017
Andalas Energy and Power Plc
('Andalas', or the 'Company')
Loan note
Andalas Energy and Power Plc, the AIM traded Indonesian focused energy company
(AIM: ADL) has issued a GBP500,000 zero coupon loan note ('the Loan Note') which
will strengthen the Company's working capital position while it continues to
progress the Company's strategy.
The Loan Note, which has been issued to Sandabel Capital L.P. is secured
against the assets of the Company and has a par value of GBP500,000 and is
repayable in cash on or before 28 April 2017 ('the Maturity Date'). No
interest is payable over the term of the Loan Note, which has been issued at a
20% discount to par value. The cash proceeds received from the lender
following the issue of the Loan Note are therefore GBP400,000.
In the event that the Loan Note is not repaid by the Maturity Date, the Loan
Note holder has the right to convert into equity at the lower of the prior days
closing bid price or a 20% discount to the 10 day VWAP in minimum tranches of GBP
20,000. For every three conversion shares issued under a conversion notice the
lender will receive one 18 month warrant with exercise price at a 100% premium
to the conversion price.
Dave Whitby, CEO of Andalas, said, "Inclusion of our first project in
Indonesia's national energy plan would be a key value trigger event for
Andalas, particularly in the eyes of industry participants and/or potential
finance partners who understand the substantial underlying value in our
project. Ahead of this, today's Loan Note strengthens our working capital
position, without the issue of equity, during an important period for the
Company. In the short term, we expect the first project approval to add
considerable value to Andalas and the loan note provides an excellent means to
fund the company's further development to this point. This is an exciting time
for Andalas as we look to prove our business model, and in the process become a
leading Indonesian focused energy company."
Appointment of Joint Broker
The securing of the non-dilutive Loan Note for the Company was facilitated by
Beaufort Securities Limited ('Beaufort'), which has been appointed joint broker
to the Company. In conjunction with their appointment Beaufort has been
granted three tranches of warrants at various premiums to the current share
price. Details of the warrants, which expire after a period of five years, are
provided below:
* 10,000,000 at 0.20 pence per share;
* 8,000,000 at 0.25 pence;
* 6,666,666 at 0.30 pence
**ENDS**
For further information, please contact:
David Whitby Andalas Energy and Power Plc Tel: +62 21 2783 2316
Sarah Wharry Cantor Fitzgerald Europe Tel: +44 20 7894 7000
Craig Francis (Nominated Adviser and Joint
Broker)
Jon Belliss Beaufort Securities Limited Tel: +44 20 7382 8415
(Joint Broker)
Frank Buhagiar St Brides Partners Limited Tel: +44 20 7236 1177
Susie Geliher
END
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