REG - Pennpetro Energy PLC - Corporate Update

Pennpetro EnergyAnnouncement

21/05/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250521:nRSU4880Ja&default-theme=true

RNS Number : 4880J  Pennpetro Energy PLC  21 May 2025

21 May 2025

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN,
THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO
DISTRIBUTE THIS ANNOUNCEMENT.

 THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7
OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE
MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON
THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN
UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Pennpetro Energy Plc

("Pennpetro" or the "Company")

Company Accepts a Convertible Loan Note Facility for £1,000,000 and Extension
of Previous £20,000,000 Share Subscription Facility

 

Introduction

 

Pennpetro (LSE: PPP) is pleased to announce that it has agreed to enter into a
Convertible Loan Note Facility  with GEM Global Yield LLC SCS ("GEM") for a
total of £1,000,000 ("CLNF").

 

Upon Closing, the Company will be able to draw down £150,000 ("Initial
Tranche") by issuing GEM Convertible Loan Notes. Subsequent tranches are
subject to certain milestones, including the re-trading of the Company's
shares on the London Stock Exchange.

 

The Company previously entered into a £20,000,000 Share Subscription Facility
("SSF") with GEM which is to be reinstated and extended through June 2028 as
part of the terms of the CLNF.

 

"We are delighted that GEM has continued to support and share our vision for
the Company. The new Convertible Loan Note Facility, coupled with the
reinstatement of the previous Share Subscription Facility will ensure the
Company is able to access the funds it requires for the foreseeable future",
commented Stephen Lunn, Chairman of Pennpetro Plc.

 

The Convertible Loan Note Facility

 

The term of the Facility is three years, with a zero coupon.

 

GEM may convert the Initial Tranche into shares of the Company at the lesser
of GBP 0.10 per share ("Fixed Conversion Price") or 100% of the average for
the three lowest closing bid prices in the 40 days immediately preceding
conversion ("Floating Conversion Price"). The Fixed Conversion Price for
subsequent tranches will be adjusted upward based on the Company meeting
certain milestones.

 

At maturity the Convertible Loan Notes convert automatically at the lesser of
the relevant Fixed Conversion Price or the Floating Conversion Price.

 

Concurrently with entering into the CLNF, GEM is being awarded 80,000,000
warrants, exercisable at 4p each for a term of 5 years.

 

Reinstatement of Previous Share Subscription Facility

 

Under the terms of the CLNF, GEM is reinstating the prior £20,000,000 SSF
with the Company and extending it through June 2028. The Company has agreed to
meet its obligations under the SSF.

 

Further information regarding the SSF is set out in the Company's announcement
on 2 June 2021.

 

Use of Proceeds

 

Proceeds of the CLNF will be used by the Company to finalise the audit for the
FY 2024, effect the re-trading of its shares on the London Stock Exchange and
to fund possible growth opportunities.

 

Proceeds of the SSF will be used to finance growth and development of the
Company.

About Global Emerging Markets (GEM)

GEM Global Yield LLC SCS ("GEM") is a $3.4 billion alternative investment
group that manages a diverse set of investment vehicles focused on emerging
markets across the world, having completed over 570 transactions in 70
countries. GEM's investment vehicles provide the group and its investors with
a diversified portfolio of asset classes that span the global private
investing spectrum. Each investment vehicle has a different degree of
operational control, risk-adjusted return, and liquidity profile, providing
GEM and its partners with exposure to Small-Mid Cap Management Buyouts,
Private Investments in Public Equities (PIPE's) and select venture
investments.

 

UK Market Abuse Regulation (UK MAR) Disclosure

 

Certain information contained in this announcement would have been inside
information for the purposes of Article 7 of Regulation No 596/2014 (as it
forms part of UK domestic law by virtue of the European Union (Withdrawal) Act
2018) until the release of this announcement. The person responsible for
arranging for the release of this announcement on behalf of Pennpetro Energy
Plc is Stephen Lunn, Chairman.

 

For further information, please contact:

 Pennpetro Energy PLC

 Stephen Lunn, Chairman                      stephengarylunn@gmail.com (mailto:stephengarylunn@gmail.com)
 Capital Plus Partners Ltd (Company Broker)

 Philip Reid, Chairman                                     pjr@capplus.co.uk (mailto:pjr@capplus.co.uk)

 Ben Tadd

                                                           bt@capplus.co.uk (mailto:bt@capplus.co.uk)

                                                         +44 (0)20 3821 6167
 Flagstaff Strategic and Investor

 Tim Thompson                                +44 (0)20 7129 1474

 Alison Allfrey                              pennpetro@flagstaffcomms.com (mailto:pennpetro@flagstaffcomms.com)

 Anna Probert

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCBRGDUGSDDGUG