Equatorial Palm Oil plc Grant of Loan Facility to Equatorial Palm Oil PLC (4298J)
July 16 2013 - 6:52AM
UK Regulatory
TIDMPAL
RNS Number : 4298J
Equatorial Palm Oil plc
16 July 2013
16 July 2013
EQUATORIAL PALM OIL plc
Grant of Loan Facility to Equatorial Palm Oil PLC
Equatorial Palm Oil plc ("EPO" or the "Company"), (AIM: PAL),
the AIM listed palm oil development company with operations in
Liberia, has entered into loan agreements (the "Loan Agreements")
with Adelise Services Limited ("ASL"), a company associated with
Michael Frayne, Executive Chairman of EPO, for the advance of
GBP29,745 and US$ 425,000 to the Company (the "Loans").
Background
On 28 June 2013, EPO announced that it was seeking to raise a
minimum of GBP2.6m to support the ongoing development of its oil
palm estates (the "Proposed Fund Raising"). The Proposed Fund
Raising is on-going and as at the date of this announcement the
Company has received commitments of approximately GBP2.0 million
from potential investors. The Company is confident that it will
complete the Proposed Fund Raising in the near future and will make
an appropriate announcement in due course. In the meanwhile, the
proceeds of the Loans will be applied towards enabling the Company
to continue developing the oil palm projects in Liberia.
The Loan Agreements
Under the terms of the Loan Agreements the Company has agreed
that:
-- an arrangement fee of 5 per cent. of the Loans will be payable;
-- the Loans will be repayable on the closing of the Proposed
Fund Raising or within 60 days following the date of the Loan
Agreements, whichever is earlier;
-- penalty interest will be chargeable on the Loans after 60
days at a rate of 2% per 30 day period thereafter if they are not
repaid under the terms of the Loan Agreements;
-- warrants over 4,816,590 ordinary shares in the Company will
be granted to ASL as consideration for providing the Loans. The
warrants are exercisable for a period of 3 years from the date of
grant at an exercise price of 10p per ordinary share.
-- ASL has agreed to convert the arrangement fee, any interest
payable and $100,000 of the Loans into the Proposed Fund
Raising.
As ASL is associated with Michael Frayne, the entering into of
the Loan Agreements is a Related Party Transaction under the AIM
Rules. Accordingly, the independent directors of EPO, being the
Directors other than Michael Frayne, having consulted with the
Company's Nominated Adviser, consider that the terms of the Loan
Agreements are fair and reasonable insofar as the Company's
shareholders are concerned.
For further information, please visit www.epoil.co.uk or
contact:
Equatorial Palm Oil plc
Michael Frayne (Executive Chairman)
Anthony Samaha (Director) +44 (0) 20 7766 7555
Strand Hanson Limited (Nominated
Adviser)
James Harris/ Andrew Emmott +44 (0) 20 7409 3494
Mirabaud Securities LLP (Broker)
Peter Krens +44 (0) 20 7484 3510
Pelham Bell Pottinger (Financial
/ Corporate PR)
Charlie Vivian / Joanna Boon +44 (0) 20 7861 3126
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGGUGAMUPWGUQ
Equatorial Palm Oil (LSE:PAL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Equatorial Palm Oil (LSE:PAL)
Historical Stock Chart
From Jul 2023 to Jul 2024