Gasol plc Gasol secures convertible loan facility (8079K)

TIDMGAS

RNS Number : 8079K

Gasol plc

28 August 2012

Gasol plc

('Gasol' or the 'Company')

Gasol secures GBP2.5 million convertible loan facility

Gasol (AIM: GAS), the West African energy development company, today announces that it has entered into a GBP2.5 million convertible loan facility, (the "Facility") with African Gas Development Corporation Limited, ("AGDC") Gasol's largest shareholder, to repay existing facilities and to provide further working capital for the Company to develop its projects.

The Facility is unsecured and carries an interest rate of 5% payable at maturity or conversion. The Facility's conversion option gives AGDC the right, at any time, to call for conversion of the loan (in whole or in part) into ordinary shares of Gasol at a price of 0.55 pence per share. AGDC may also call for the repayment of the Facility (to the extent not previously converted) at the end of each three month period of the one year term. At the end of the term of the Facility, repayment may be made at the Company's choice either in cash or in Gasol shares (priced at a 10% discount to the mid-market closing price on the day before repayment).

The Facility will be used to repay the GBP1.0 million AGDC November 2011 facility, together with GBP500,000 of the AGDC April 2011 facility, including accrued interest. The balance of the AGDC April 2011 facility, being GBP500,000, will be converted into new ordinary shares of Gasol in accordance with the terms of the agreement relating thereto (as revised). Application has been made to the London Stock Exchange for 100,000,000 new ordinary shares in Gasol to be admitted to trading on AIM. The new ordinary shares will rank pari passu in all respects with the existing issued shares. It is expected that admission will become effective and that dealings in the new ordinary shares will begin on 3 September 2012.

The balance of the Facility will provide the Company with further working capital. Additionally, in connection with the option agreement announced today the Company is examining a range of funding alternatives. Further announcements will be made as appropriate.

The participation by AGDC in the Facility is considered a related party transaction under the AIM Rules for Companies. The Directors of Gasol, having consulted with Panmure Gordon (UK) Limited, the Company's Nominated Adviser and Broker, consider the terms of this transaction to be fair and reasonable insofar as its shareholders are concerned.

Gasol's Chief Operating Officer, Alan Buxton, said: "We are pleased that we continue to enjoy the support and confidence of our major shareholder. Gasol has a strong pipeline of projects at an advanced stage of development and the new funding from AGDC will enable further progress to be achieved."

- Ends -

Enquiries

 
 Gasol plc 
  Alan Buxton, Chief Operating Officer    +44 (0) 20 7290 3300 
 Panmure Gordon (UK) Limited 
  Dominic Morley (Corporate Finance) 
  Callum Stewart (Corporate Finance) 
  Adam Pollock (Corporate Broking)        +44 (0) 20 7459 3600 
 Pelham Bell Pottinger 
  Olly Scott                              +44 (0) 20 7861 3891

This information is provided by RNS

The company news service from the London Stock Exchange

END

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