Armour Energy’s Early Redemption of Convertible notes by M.H. Carnegie & Co Pty Ltd

  • Jan 03, 2019 AEDT
  • Team Kalkine
Armour Energy’s Early Redemption of Convertible notes by M.H. Carnegie & Co Pty Ltd

The company is engaged into the development of associated liquids resources and development of gas in Northern Australia. Armour Energy Ltd (ASX: AJQ) share price is trading 2.222% lower, trading at the price of $0.088. The stock has undergone a performance change of 6.66%. The stock has a market capitalization of $45.74 million at the current market price.

M.H. Carnegie & Co Pty Ltd is seeking early redemption of Convertible Notes held by an investment fund it manages which requires payment of 110% of face value (approximately $15,200,000) plus accrued interest to the MHC Fund by either Armour redeeming the Convertible Notes, or by third parties purchasing the Convertible Notes within 60 days. Armour the company is in acquiring the relevant Convertible Notes from MHC Fund in discussions with third parties interested.

Armour Energy Ltd setting out the terms of a Convertible Redeemable Notes Trust Deed refers to its announcements to the ASX on each of 26 July 2018, 30 May 2017 and 16 December 2016. With a face value of $0.11 each, Armour currently has on the issue a total of 373,799,804 convertible notes. The Notes have a maturity date of 30 September 2019. Under the Note Deed unless otherwise agreed, if not converted or redeemed before that date the Notes will be redeemed at maturity at their face value plus the amount of any outstanding interest.

The company reports that it has been presented with an irrevocable notice of redemption from M.H. Carnegie & Co Pty Ltd concerning 125,807,782 Notes held by MHC Fund Services 2A Pty Ltd. As mentioned in the Convertible Notes Terms of Issue as the cornerstone investor MHC Fund, in the Convertible Note issue has the right to the early redemption of the funds they have subscribed in the event certain conditions are subsequently not met or waived by them. The receipt of the Redemption Notice does not have any immediate impact on the Tribeca facility or any other Convertible Notes on the issue. The company has now up to 60 days to either find a buyer for the MHC Notes or to redeem them, under the terms of the Note Deed.

110% of the face value of the MHC Notes is the redemption amount will be an amount equalling, plus the amount of any accrued but unpaid interest as at the date of redemption. MHC must receive the full Redemption Amount if the MHC Notes are transferred to a third party. To purchase some or all the MHC Notes, the Company advises that it is already in discussions with third parties.


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