The shareholder is exercising 17mln warrants at an exercise price of 7.5 cents per warrant. It sees EGME’s shareholding increase to 21.3%. EGME holds further warrants, 16.95mln more, which it intends to exercise them in the near future and its stake will rise to 24.49%.
Cash proceeds will be used to retire Simba’s debt and for working capital purposes, the company said.
It added that Simba and Essel anticipates a heavy workload over the next year as they continue to advance and finalize oil and gas concessions in other jurisdictions.
Punkaj Gupta chief executive said: “Essel Group Middle East is pleased to exercise the warrants issued as part of the May 31, 2016 financing in order to provide additional working capital and to assist in retiring outstanding debt in Simba.
“We are also pleased with progress to date with our seismic program on Block 2 in Kenya.”
Story by ProactiveInvestors