Corcel PLC (LSE: CRCL) announced a boost in its shares during Monday’s early trading following the confirmation of a £10 million loan note financing deal.
Investment firm Extraction Srl, where Corcel’s chair Antoine Karam holds shares, will provide an initial £1 million in October and another £1 million in January. The remaining £8 million might be accessible throughout the agreement’s three-year span.
The firm mentioned that the loans would have a 12% interest rate and could be converted into shares at a premium of 79.8% compared to Corcel’s closing rate on Friday, 15 September.
Corcel emphasized this facility’s role in offering both short-term and extended financial support for its ongoing ventures in Angola and its expansion in Brazil and other regions.
o Agreement with the Lender to fund £1m in October 2023 and £1m in January 2024, with a further £8m to potentially be made available over a three-year term
o Loan proceeds are convertible into new ordinary shares at a fixed price of £0.008, a 79.8% premium from the most recent closing price on 15 September 2023, and bear 12% interest per annum
o Facility provides both short and longer-term funding for ongoing operations in Angola and business development in Brazil and elsewhere
“The deal facilitates quicker value generation for our shareholders. Moreover, it reflects the operational and financial transformations in our business, particularly in Angola and in the type of funding used,” remarked executive chair Karam.
He further added, “This facility gives us an economical long-term funding option, removing the need to look at other costlier and more dilutive capital options. We’re now poised to see the preliminary outcomes from our maiden oil well drilling in the Kwanza Basin, Angola.
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned