Essel Group Middle East (EGME) announced Wednesday that it has exercised 17,000,000 warrants of Simba Energy Inc. at $0.075 per share for total proceeds of $1,275,000. Proceeds will be used to retire remaining debt in Simba and for working capital purposes.
As a result of the exercise of warrants, EGME has increased its holdings to 21.3 percent. EGME also holds an additional 16,957,485 warrants at $0.075 and has stated that it intends to exercise these warrants in the near future to further strengthen the working capital of Simba. The holdings of EGME will increase to 24.49 percent once the additional 16,957,485 warrants are exercised.
“Essel Group Middle East is pleased to exercise the warrants issued as part of the May 31, 2016 financing in order to provide additional working capital and to assist in retiring outstanding debt in Simba,” said Punkaj Gupta, CEO of EGME and CEO of Simba.
EGME is continuing work on the seismic program in Block 2A in Kenya. Both companies anticipate a heavy workload over the next year as they continue to advance and finalize oil and gas concessions in other jurisdictions.
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