Reabold Resources PLC Partial Sale of Convertible Loan Notes (9332Q)
March 03 2021 - 2:00AM
UK Regulatory
TIDMRBD
RNS Number : 9332Q
Reabold Resources PLC
03 March 2021
3 March 2021
Reabold Resources plc
("Reabold" or the "Company")
Partial Sale of Convertible Loan Notes in Corallian
Reabold, the investor in upstream oil and gas projects, is
pleased to announce that, further to the Company's announcements of
22 February 2021 and 24 February 2021, it has initiated the sale of
a portion of the convertible loan notes (the "CLN") in Corallian
Energy Limited ("Corallian") with a principal value of GBP500,000,
to a group of strategic investors (the "strategic investors"), in
exchange for cash proceeds of GBP500,000. Reabold will retain
GBP500,000 principal value of the CLN.
The strategic investors have indicated their support of an
initial public offering ("IPO"), reverse takeover ("RTO") or
similar for Corallian, which is in line with Reabold's strategy of
clearly identifying monetisation opportunities across its
portfolio. The strategic investors have also signalled their
intention to support Reabold in facilitating further potential
strategic value creation opportunities across the wider Reabold
portfolio.
As previously announced, the CLN will help to fund the
submission of a draft Field Development Plan for the Victory gas
field ("Victory"), which Corallian plans to submit prior to the end
of 2021. The CLN, including interest at a rate of 15 per cent. per
annum (accruing daily), will convert into new ordinary shares in
Corallian ("Corallian Shares") within 21 months from 24 February
2021. If, during this period, Corallian is acquired, undertakes an
IPO or a RTO (each, a "corporate action"), where the relevant
valuation is greater than GBP3.20 per share, the CLN will convert
at GBP3.20 per Corallian Share. If the relevant valuation is below
GBP3.20 per Corallian Share, then the CLN will convert at a price
equal to the relevant valuation. If no such corporate action has
taken place within 21 months, the CLN will automatically convert at
a price of GBP1.50 per Corallian share.
Stephen Williams, Co-CEO of Reabold, commented:
"We're pleased to be selling GBP500,000 of our convertible loan
notes in Corallian to a group of strategic investors. Their support
for an IPO, RTO or other listing alternative for Corallian is
consistent with our monetisation goal once Corallian has created
further value. We're also delighted to have the opportunity to work
alongside these strategic investors to progress other projects
within our wider portfolio."
For further information, contact:
Reabold Resources plc c/o Camarco
Sachin Oza +44 (0) 20 3757
Stephen Williams 4980
Strand Hanson Limited - Nomad & Financial +44 (0) 20 7409
Adviser 3494
James Spinney
Rory Murphy
James Dance
Stifel Nicolaus Europe Limited - Joint Broker +44 (0) 20 7710
Callum Stewart 7600
Simon Mensley
Ashton Clanfield
Panmure Gordon - Joint Broker
Hugh Rich +44 (0) 207 886
Nick Lovering 2733
Camarco
James Crothers
Ollie Head +44 (0) 20 3757
Billy Clegg 4980
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation.
Notes to Editors
Reabold Resources plc is an investing company investing in the
exploration and production ("E&P") sector. The Company's
investing policy is to acquire direct and indirect interests in
exploration and producing projects and assets in the natural
resources sector, and consideration is currently given to
investment opportunities anywhere in the world.
As an investor in upstream oil & gas projects, Reabold aims
to create value from each project by investing in undervalued,
low-risk, near-term upstream oil & gas projects and by
identifying a clear exit plan prior to investment.
Reabold's long term strategy is to re-invest capital made
through its investments into larger projects in order to grow the
Company. Reabold aims to gain exposure to assets with limited
downside and high potential upside, capitalising on the value
created between the entry stage and exit point of its projects. The
Company invests in projects that have limited correlation to the
oil price.
Reabold has a highly-experienced management team, who possess
the necessary background, knowledge and contacts to carry out the
Company's strategy.
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