Shares of Corcel experienced a significant boost on Monday, surging up to 25% after the company announced its agreement to a convertible loan worth up to £10 million. This financing will provide the necessary funds for the continuation of operations in Angola, as well as support business development initiatives in Brazil and other regions.
As of 1300 GMT, shares were up by 0.07 pence or 17%, reaching 0.52 pence, with a previous peak of 0.55 pence earlier in the day.
Corcel, an upstream oil-and-gas development firm, has finalized the loan agreement with Extraction Srl, a natural-resource investment group. It is worth noting that Corcel’s Chairman, Antoine Karam, holds a 45% ownership stake in Extraction Srl.
This loan allows the company to access £1 million next month and an additional £1 million in January, with the remaining funds available over a three-year period.
To ensure the arrangement’s success, Corcel will issue 1,000 convertible loan notes worth £1,000 each around October 1st. Subsequently, they will issue an additional batch of notes worth £1 million around January 1st. The ongoing disbursements of the loan will be subject to mutually agreed terms between the company and the lender.
Commenting on the loan agreement, Karam emphasized that this long-term facility enables cost-effective access to capital without needing to consider more dilutive or expensive sources.