Brief: Dome Energy Draws Up Plan To Restore Share Capital

Hotel Fast SSE AB (publ)

08/10/2020 14:09

Oct 8 (Reuters) - Dome Energy AB (publ)  DOMEN.ST :
    * THE BOARD OF DIRECTORS OF DOME ENERGY HAS DRAWN UP A PLAN TO RESTORE THE SHARE CAPITAL
    * US SUBSIDIARIES, IN WHICH OPERATIONS ARE CONSOLIDATED, ARE SOLD TO THREE LENDERS AGAINST
OFFSETTING THEIR LOAN CLAIMS
    * SALE IS SUBJECT TO SO-CALLED "LEO LAG", WHICH REQUIRES A 90% MAJORITY
    * VALUE OF TRANSFER, JUST OVER SEK 41 MILLION, IS LESS THAN BOOK VALUE OF SUBSIDIARIES OF
PARENT
COMPANY
    * THERE APPEARS TO BE RISK THAT THE COMPANY IS TECHNICALLY IN SOLVENT AND HENCE CO HAS DRAWN
UP A
PLAN TO RESTORE SHARE CAPITAL
    * ALL INTERNAL TRANSACTIONS BETWEEN PARENT COMPANY AND SUBSIDIARIES ARE WRITTEN OFF IN BOTH
DIRECTIONS
    * REMAINING CREDITORS ARE OFFERED TO CONVERT THEIR LOAN RECEIVABLES INTO EQUITY THROUGH A
DIRECTED
ISSUE
    * CALL A NEW EXTRAORDINARY GENERAL MEETING TO REDUCE SHARE CAPITAL TO APPROXIMATELY SEK
500,000
WITHOUT WITHDRAWAL OF SHARES
    * SOUNDINGS ARE UNDER WAY WITH VARIOUS PARTIES ABOUT A CASH ENHANCEMENT OF EQUITY THROUGH A
RIGHTS
ISSUE OR DIRECTED ISSUE
    * SOUNDINGS ARE UNDERWAY TO LAUNCH A NEW CASH FLOW POSITIVE BUSINESS IN A COMPLETELY
DIFFERENT
INDUSTRY

Source text for Eikon:  ID:nWkr5LY6g0 
Further company coverage:  DOMEN.ST 

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