Kibo Energy settles outstanding director, management fees

The AIM-traded firm said the instrument provided for the issue of unsecured redeemable convertible loan notes of integral multiples of £1 each, to a total amount of £0.67m.

It said the subscriptions would be used to fund its working capital requirements related to outstanding salaries and fees due to management, directors and former directors, who were the notes’ sole subscribers, prorated to the amounts owing to each subscriber as of Friday.

During the stated 16-month period, no salaries and fees were paid to management and directors.

“The notes are convertible to Kibo ordinary shares at a price identical to the price paid per share issued in the last private placing undertaken by the company, or any subsequent issue, whichever is the lower price,” Kibo Energy explained in its statement.

It said the redemption date of the notes was 1 March 2022, with subscribers able to convert some or all their notes to shares at any time from the date of issue to five business days before then.

“Until the notes are repaid by the company or converted into ordinary shares, interest shall accrue and be paid on the principal amount of the notes outstanding at 7% per annum.”

At 1431 GMT, shares in Kibo Energy were up 2.78% at 0.19p.