Helium One Global Ltd agreed the final conversion totalling £3,500,000 from investors at 0.218p and the allotment of 1,605,504,587 new ordinary shares, with shareholders’ approval.
TVRs
The funds went towards the company’s wholly owned helium project in the Southern Rukwa Basin in Tanzania and its 50% working interest in the Galactica-Pegasus project in Colorado, USA.
Helium One has also signed a deed of termination, following a revised development plan for Galactica and the “adverse share price reaction since the investment agreement was entered into”.
The deed will end immediately after admission and repayment of the unconverted part of the advance and a 12% early termination fee.
A total of £7,875,000 was converted leaving an unconverted balance of £2,125,000.
Helium One said that the investors had agreed to accept a cash repayment, and a 12% termination fee, for an overall repayment of £2,380,000.
Following admission, the company’s issued ordinary share capital comprises 9,322,158,881 ordinary shares, with one voting right each.
Helium One holds no ordinary shares in treasury.
PRODUCTION
Non-executive chairman James Smith added that the company had also reduce its capital spending by converting some of the Galactica production equipment to a leasing basis.
“This has had the beneficial effect of enabling us to cancel the remaining CLN [convertible loan notes] amounts due to our reduced capital requirements.
“The company remains in a healthy financial position and these changes will in no way impact the development programme in Tanzania or the timetable to first gas in the US which is expected before the year end.”