LONDON (ShareCast) - (Sharecast News) - Bahamas Petroleum Company (BPC) updated the market on the funding agreements it had announced on 14 December on Wednesday.
The AIM-traded firm said the counterparty to the agreements was 1798 Volantis Fund - a fund managed on a discretionary basis by Lombard Odier Asset Management.

As it set out on 14 December, as part of the terms of the funding agreements, on the earlier of either 60 days after the date of spudding of BPC's Perseverance 1 well in the Bahamas, 31 December 2021, or such other date where a reconciliation was permitted under the funding agreement, BPC could be required to make a cash payment to the investor to the extent that the investor's aggregate return from a sale of the new shares had been less than 115% of the subscription price.

BPC said it would only be required to make a payment in the event the Investor sold shares for an average price of less than 2.3p per share, with the payment being the difference between 2.3p per share and the average sales price.

No payment would be required for any shares that the investor continued to hold at the relevant assessment date.

On the basis that the Perseverance 1 well would spud on 20 December, the relevant assessment date would be 18 February.

The company said there was no capacity for any such payment to be made in the form of shares, such that the level of dilution to BPC under the funding agreement was fixed and knowable.

"This arrangement is substantially the same as the agreement entered into with Trafalgar Capital Management HK, a Hong Kong-based financier, for the financing of certain aspects of the Columbus merger transaction earlier in 2020," the board said in its statement.

"The final reconciliation date under that agreement has recently passed, and the ultimate outcome was one advantageous to BPC, in that there was no additional cost to BPC for funding that was secured at the time of the merger on advantageous terms."

At 1628 GMT, shares in Bahamas Petroleum Company were up 3.11% at 2.65p.

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