Share Name Share Symbol Market Type Share ISIN Share Description
Andalas Energy And Power PLC LSE:ADL London Ordinary Share IM00B1FPZP63 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.0035p -8.24% 0.039p 0.038p 0.04p 0.0425p 0.039p 0.0425p 13,824,718 09:51:45
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Alternative Energy 0.0 -3.6 -0.1 - 2.33

Andalas Energy and Power Plc Institutional Investment

27/11/2017 7:00am

UK Regulatory (RNS & others)


 
TIDMADL 
 
Andalas Energy and Power Plc 
 
                         ('Andalas', or the 'Company') 
 
                           Institutional investment 
 
Andalas Energy and Power plc (AIM:ADL) is pleased to announce, following the 
announcement of our Sumatra-1 project, a placing of 1,277,139,208 new ordinary 
shares of Nil par value (the "Placing Shares") to raise GBP500,000 (before 
expenses) with new and existing shareholders at an issue price of 0.03915 pence 
per share.  The placing was led by 1798 Volantis Fund Ltd ("Volantis") who has 
subscribed for a total of 1,277,139,208 shares equating to 21.33% of the 
enlarged share capital of the Company.  Furthermore Volantis has provided the 
Company with a flexible convertible loan note facility ("facility") for up to GBP 
2,000,000 (subscription price GBP1,800,000) to provide access to follow-on 
capital that will be required to develop at least one of its projects through 
to final investment decision. 
 
Highlights: 
 
  * Equity placing to raise a total of GBP500,000 at a 10% discount to the 
    closing mid-market share price. 
  * Volantis has also agreed to provide the Company with up to GBP2,000,000 face 
    value (issue price GBP1,800,000) of follow-on finance via the issue of a 
    convertible loan note facility: 
      + The first GBP500,000 draw down is subject to mutual agreement and will be 
        no earlier than 1 March 2018, or such other date as agreed in writing. 
      + Three further drawdowns of GBP500,000 are also subject to mutual 
        agreement and can be drawn down quarterly thereafter, or such other 
        date as agreed in writing. 
  * Issue of warrants over 638,569,604 ordinary shares of the Company with 5 
    year term and a strike price of 0.54375 pence per share, representing a 25% 
    premium to the closing share price. 
 
Simon Gorringe, Chief Executive of Andalas Energy & Power, commented, "The 
funds raised in the placing enable the Company to advance each of its 
projects.  It is expected that, taken together the proceeds from the equity 
subscription alongside the convertible loan note would, if drawn down, provide 
the capital to fund the Company through to the first projects final investment 
decision, which is the precursor to construction. 
 
"The facility provides the Company with a flexible funding option from our 
largest shareholder, which is designed to provide back-stop funding, whilst at 
the same time giving the Company the option to enter into alternative funding 
options, for example at project level, that are potentially more accretive to 
all shareholders, including Volantis." 
 
Terms of the Convertible loan notes 
 
Volantis has subscribed for up to 80 GBP25,000 senior unsecured zero coupon loan 
notes for a maximum potential investment of GBP2,000,000 face value (issue price 
GBP1,800,000).  The details of the facility are as follows: 
 
Key terms: 
 
  * The Loan notes are a senior unsecured obligation of the Company. 
  * The Loan notes are repayable by the issuer at par 12 months after the 
    relevant issue date. 
  * The Loan notes are convertible at the holders' discretion at any time up to 
    redemption date. 
  * Early redemption is possible at the election of the issuer and will incur 
    an early redemption penalty of 5% of the par value. 
  * In the event of default the Loan notes will incur a default penalty of 20% 
    of the outstanding amount and become fully redeemable. 
  * In conjunction with the issue of each loan note tranche, 5 year warrants 
    will be issued at a strike price that is set at 125% premium to the closing 
    mid-market share price prior to draw down. 
 
Drawdown terms 
 
  * Loan note draw down by mutual agreement in equal tranches of 20 loan notes 
    of GBP25,000 each (GBP500,000) every 3 months, or such other date as agreed in 
    writing. 
  * Each tranche of the loan note facility can be drawn down.  The first draw 
    down date is 1 March 2018. 
  * The Loan notes are issued at 90% of the par value (issue price of GBP22,500, 
    vs face value of GBP25,000).  No further interest will be payable. 
  * The Loan notes are convertible into equity at the lessor of 125% of the 
    closing price on the day prior to issue or if lower 90% of the market price 
    (being average of 5 day volume weighted average price as chosen by the 
    investor during the twenty trading days preceding and inclusive of the 
    conversion date). 
 
Warrants 
 
Issue of warrants over 638,569,604 ordinary shares of the Company with 5 year 
term and a strike price of 0.054375 pence per share, representing a 25% premium 
to the closing share price.  The warrant holder has also been granted the right 
to participate in any future placings in proportion to their unexercised 
warrant holding. 
 
Equity subscription 
 
The proceeds of the placing will be used to provide additional working capital 
and project development capital to advance Andalas' portfolio of wellhead IPP 
projects. 
 
Application has been made to the London Stock Exchange for admission of the 
Placing Shares to trading on AIM ('Admission') and it is expected that 
Admission will occur and that trading in the Placing Shares will commence at 
8.00 am on 30 November 2017. The Placing Shares will rank pari passu in all 
respects with the Company's existing issued ordinary shares. 
 
Following the issue of the Placing Shares, the Company's issued share capital 
will consist of 5,985,691,798 ordinary shares of nil par value ("Ordinary 
Shares"), with each Ordinary Share carrying the right to one vote. The Company 
does not hold any Ordinary Shares in treasury. This figure of 5,985,691,798 
Ordinary Shares may therefore be used by shareholders in the Company as the 
denominator for the calculations by which they will determine if they are 
required to notify their interest in, or a change in their interest in, the 
share capital of the Company under the FCA's Disclosure Guidance and 
Transparency Rules ("DTRs"). 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulations 
(EU) No. 596/2014 ('MAR').  Upon the publication of this announcement via a 
Regulatory Information Service ('RIS'), this inside information is now 
considered to be in the public domain. 
 
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 
                (Nominated Adviser and Joint Broker)       7000 
 
                                   **ENDS** 
 
 
 
END 
 

(END) Dow Jones Newswires

November 27, 2017 02:00 ET (07:00 GMT)

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