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LONDON - Pennpetro Energy PLC (LSE:PPP) has secured a £250,000 convertible loan note (CLN) with Canada-based RMD Group to address its financial challenges and work toward resuming trading on the London Stock Exchange, the company announced Thursday.
The CLN carries a 6% interest rate with a £0.04 conversion price, according to a shareholder update from Pennpetro Chairman Olaf Rapp. The funds are being used to discharge current creditors and satisfy going concern requirements.
As part of the agreement, RMD Group will have the right to appoint two directors to Pennpetro’s board. The company plans to add three new directors in total, including a non-executive chairman, CEO, and COO.
The update also addressed the restructuring of a $4.7 million loan from Petroquest Energy Limited. Petroquest has agreed to write off the majority of the loan and release all security on Nobel Petroleum LLC assets, while swapping the remaining balance for a majority shareholding in Pennpetro’s US subsidiary.
Rapp noted that previous agreements with Globalvision International have not been completed as Pennpetro was "unable to fulfil the acquisition conditions relating to perfecting the leases and committing funding."
The company is working to publish its delayed interim accounts and 2024/25 financial report, following today’s release of its annual report for the period ending March 31, 2024. Pennpetro expects to apply for a return to trading after publishing these outstanding financial statements, likely no earlier than November.
The chairman also revealed that the current directors have not received payment for their services, unlike previous management who received £120,000 when "all available funds should have been paid by the Company to Creditors holding judgment."
Pennpetro plans to schedule an AGM to approve the 2023/2024 accounts and address resolutions regarding director appointments and share issuances, based on the press release statement.
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