Bahamas Petroleum Company PLC (LON:BPC) has provided additional details related to the US$20mln funding arrangement announced on Monday.
It noted that the counterparty in the funding agreement is 1798 Volantis Fund Ltd, a fund managed by Lombard Odier Asset Management.
READ: BPC arranges US$20mln funding for busy 2021
The company also detailed that a cash payment back to the fund may be required if any sale of new shares is made by Volantis at a price less than 115% of the subscription price (which would be 2.3p). The payment would make up the difference and the company said the agreement has no capacity for the payment to be made in shares.
Bahamas Petroleum said the arrangement is substantially the same as the agreement entered into previously with Trafalgar Capital Management which supported the group's acquisition of Columbus Energy earlier this year – the company noted that there was no additional cost to Bahamas Petroleum for that funding.
The latest funding deals sees Bahamas Petroleum receive £7.5mln (US$10mln) through the issue of 375,000 new shares priced at 2p each and an option agreement allows it to access up to US$10mln (£7.5mln) within 10 days after the spud of Perseverance-1.
On Monday, Bahamas Petroleum chief executive Simon Potter said the arrangement is consistent with the company’s overall funding strategy and provides the flexibility to continue to pursue an aggressive growth agenda at a pace determined by the company.
He also described the financial backing as a “strong vote of confidence in BPC”.
"2021 will be a busy year for BPC in pursuing operations that have the potential to create considerable value for the company,” Potter said in Monday's statement.