Oilex Ltd New Series C Loan Facility (7902B)

TIDMOEX

RNS Number : 7902B

Oilex Ltd

03 February 2020

ASX-RNS Announcement

3 February 2020

ASX: OEX

AIM: OEX

New Series C Loan Facility

Oilex Ltd (the Company) is pleased to advise that it has entered into an agreement, with existing shareholders who are exempt professional investors to secure a new loan funding facility of GBP350,000 (Series C Loan).

Summary of Key Terms

   Loan Term:                       1 August 2020 
   Interest Rate:                    5% 
   Repayments                     100% payable at maturity 
   Options Issued:                166,666,667 options over ordinary shares (Options) 
   Option Exercise Price:      GBP0.0021 per option 
   Option Expiry Date:          On 1 August 2020 
   Security:                           Unsecured 

Key Undertakings: Not to dispose of assets having an aggregate value more than A$1 million

Not to incur any financial indebtedness more than A$50,000

Not to incur any aggregate payment or outgoing exceeding A$1 million (except for wages)

Customary additional provisions regarding events of default, undertakings, covenants and representations and warranties remain unchanged.

The options, which if exercised in their entirety, will result in a cash inflow to the Company of GBP350,000. The proceeds from the conversion of options will be applied to the outstanding Series C Loan balance.

The Series C Loan proceeds will be applied to general working capital. The issue of the new options is under ASX Listing Rule 7.1. with the applicable Appendix 3B to follow shortly.

Related Party Transaction

Republic Investment Management Pte Ltd (Republic) participated in GBP125,000 of the Series C Loan amount (Loan Funding) and will be issued 59,523,810 of the loan Options. Republic has a shareholding in the Company of 12.7% and is therefore categorised as a Substantial Shareholder of the Company pursuant to the AIM Rules for Companies (AIM Rules). Accordingly, the entering into the Loan Funding with Republic is classified as a related party transaction pursuant to the AIM Rules.

The Directors of the Company, having consulted with Strand Hanson Limited, the Company's Nominated Adviser, consider that the terms of the Loan Funding with Republic are fair and reasonable insofar as the Company's shareholders are concerned.

For and on behalf of Oilex Ltd

Mark Bolton

Chief Financial Officer Company Secretary

For further information, please contact:

 
 Investor               AIM Broker                  AIM Nominated          Media Enquires         Media Enquiries 
 Enquiries              Novum Securities            Adviser                (UK)                   (Aus) 
 Oilex Ltd              Broker                      Strand Hanson          Vigo Communications    Citadel-MAGNUS 
 Joe Salomon            Colin Rowbury               Limited                Public Relations       Michael Weir 
 Managing               Email:                      Nominated Adviser      Patrick                Email: 
 Director               crowbury@novumsecurities.   Rory Murphy/Ritchie    d'Ancona/Chris         mweir@citadelmagnus. 
 Email:                 com                         Balmer                 McMahon                com 
 [e-mail]     Tel: +44 20                 Email:                 Email:                 Tel: +618 
 Tel: +61               7399 9427                   oilex@strandhanson.c   patrick.dancona@vigo   6160 4900 
 8 9485 3200            UK                          o.uk                   comms.com              Australia 
 Australia                                          Tel: +44 20            chris.mcmahon@vigoco 
                                                    7409 3494              mms.com 
                                                    UK                     Tel:+ 44 20 7390 
                                                                           0230 
                                                                           UK 
 

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February 03, 2020 09:23 ET (14:23 GMT)