Anglo African Oil & Gas plc, an independent oil and gas developer, became aware over the weekend of a short position over the Company's ordinary shares (the “Ordinary Shares”) by Sandabel L.P. (“Sandabel”), the provider of an unsecured convertible loan to the Company.
In light of this, the Company has negotiated with Sandabel to convert £750,000 of unsecured loan notes issued pursuant to the initial partial drawdown announced on 14 November 2018 into Ordinary Shares at a conversion price of 6.3 pence per Ordinary Share. The Company will, therefore, issue Sandabel with 11,904,761 new Ordinary Shares (the “New Shares”).
Following the redemption by issue of 11,904,761 new Ordinary Shares, the total amount currently outstanding pursuant to all loan notes issued to Sandabel will be £250,000.
Sandabel has undertaken that it will not adopt any net short position in the Ordinary Shares in the future.
The Company is also reviewing alternative sources of capital financing available to it in order to ensure that the capital required by the Company is secured on the best terms and takes fully into account the interest of shareholders.
Details of the New Shares
Application will be made for the New Shares, which will rank pari passu with the existing shares, to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and dealings will commence in the New Shares on or around 29 November 2018.
Total Voting Rights
Following the issue of the New Shares, the issued share capital of the Company will consist of 173,960,785 shares. No shares were held in treasury at the date of this announcement. The total current voting rights in the Company are therefore 173,960,785.
The above total current voting rights number is the figure which may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in the Company.