Posted on: June 30, 2020

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Gneiss Energy is pleased to announce that we have successfully advised Solo Oil (AIM: SOLO) on the entry into a share Subscription Deed with Prolific Basins LLC, a U.S-based specialist energy focused investor.

Pursuant to the Subscription Deed, in the coming days, Prolific Basins will make an investment of US$500,000 (the “First Closing”), by way of an initial subscription for new ordinary shares of 0.2p each in the company (the “Ordinary Shares”). Prolific Basins will pay for these Ordinary Shares at First Closing and it is expected that First Closing will take place in the next seven days.

Provided the Company satisfies certain conditions set out in the Subscription Deed, an additional investment of US$500,000 will be made by Prolific Basins following the Company’s next annual general meeting, and a further US$1,000,000 may be invested within the next 12 months. Prolific Basins may invest a further additional US$3,000,000, with the consent of the Company only, for a total of US$5,000,000, in the aggregate, under the Subscription Deed.

The proceeds from investment rounds will be used by the company to fund the planned appraisal programme on its Ntorya gas field in Tanzania and for general working capital purposes, while the company continues to progress the sales process of its interest in Tanzania.

Our Oil & Gas Team is delighted to have now announced its 6th transaction of the year.

For the official press release, click here.

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