# PetroNeft Resources Converts debt to equity under 2021 convertible loan agreement

- Link: https://www.directorstalkinterviews.com/petroneft-resources-converts-debt-to-equity-under-2021-convertible-loan-agreement/4121037343
- Published: 2021-12-08T07:12:23+00:00
- Author: Giles

**PetroNeft Resources plc** (LON:PTR) an oil & gas exploration and production company,
operating in the Tomsk Oblast, Russian Federation, and 90% owner and operator of
Licence 67 and 50% owner and operator of Licence 61, has today provided a financing
update.

**Highlights**

·      Total of $37,500 of debt converted to equity under 2021 convertible loan 
agreement for the issuance of 1,395,255 new ordinary shares.

**Loan facility**

PetroNeft Resources previously secured a convertible loan agreement, it being:

·      **February 16^(th), 2021**: entered a US$2.9 million loan agreement with 
a group of 13 lenders. Lenders have the right to convert 75% of the outstanding 
loan to shares at a conversion price of stg £0.02 in year 1 and stg £0.025 in year
2.

The conversion of this debt to shares will result in the outstanding debt principal
under these agreements being reduced from $1.083 million to $1.046 million and will
result in an increase in the total number of issued shares in the Company from 1,070,397,358
to 1,071,792,613.  All shares are being issued at a premium to the share price on
the date that the terms of the agreements were announced.

An application will be made to the London Stock Exchange and Euronext Dublin for
the 1,395,255 PetroNeft ordinary shares to be admitted to trading on AIM and Euronext
Growth. It is expected that admission to trading on each exchange will become effective
and that dealings in the new ordinary shares will commence on AIM and Euronext Growth
at 8.00 a.m. on 14 December 2021.

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