Equator Exploration Secures Additional Financing
Equator Exploration has entered into an unsecured short-term working capital loan facility for US$5 million with shareholder lenders. The loan is to be repaid by 15 December 2007. The funds for repayment are expected to be available either from the cash element receivable on completion of the farm-out of OPL 323, which was announced by the Company on 17 August 2007, or from other sources being evaluated by the Company.
In consideration, the Company has agreed to issue 8,375,000 warrants pro rata to the lenders at an exercise price of 30p per share, which may be re-set downwards depending upon market prices during the first fifteen days following lifting of the current suspension of trading of the Company's shares. The warrants are exercisable over 2 years. The loan carries interest at an annual rate of 6%. If repayment is not made by the due date, then both the principal and interest will be converted to common shares.
- Equator Updates on Status of Offshore Nigeria Prospecting Licenses (Jan 26)
- Equator Exploration Secures Short-Term Funding (Dec 24)
- Equator & Peak Dance Around Bilabri (Jun 25)