Petroleum Africa
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Friday, November 3, 2023
San Leon Energy, focused on development and exploration activities in Nigeria, has provided the following update on the investment of up to $187 million into the Company by Tri Ri Asset Management Corp. (TRAM). As previously announced on October 10, TRAM has confirmed that all conditions precedent to its investment have been satisfied and San Leon has accordingly requested draw down of the $125.0 million convertible secured loan from TRAM. In this respect, TRAM has confirmed to San Leon that funds are in the process of being transferred from TRAM’s bank in North America and San Leon has since received confirmation that payment has been made. San Leon expects to receive the net proceeds of the Loan shortly.
As part of the investment, TRAM also agreed to subscribe for 44,991,302 new ordinary shares of €0.01 each in the Company at a price of 30 pence per new Ordinary Share. It was previously expected by both TRAM and San Leon that the subscription would take place on or before October 31, 2023. TRAM has signed and returned the subscription letter for the Subscription Shares and San Leon understands that TRAM is currently in the process of setting up an account in the UK with its prime broker who will then be responsible for concluding the settlement of the Subscription Shares. San Leon expects the setting up of TRAM’s account in the UK to conclude shortly, following which San Leon will apply for admission of the Subscription Shares to trading on AIM.
Pending receipt of the funds from TRAM, the $5.0 million loan from funds managed by Toscafund Asset Management, which was originally announced by San Leon on August 8, 2023, remains outstanding. In this regard, San Leon is in regular correspondence with Toscafund in relation to the likely timing of any repayment and release of the security held by Toscafund, that comprises both a debenture issued by the Company as well as assignments and pledges over all of its group companies’ loan and equity interests in Energy Link Infrastructure (Malta) Limited. In addition, the Company has not yet settled any of its other outstanding creditors.
Further announcements will be made in due course following receipt of funds from TRAM.
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