MARKET DEVELOPMENT
DekelOil Lenders Convert into Shares as Production Nears
DekelOil Lenders Convert into Shares as Production Nears
07/01/2014 (Proactive Investors UK) - Palm oil group DekelOil (LON:DKL) has agreed to four short-term capital loan notes totalling €570,000 being converted into shares.
The loan notes were converted at an equivalent price of 1.1p per share, a 19% premium to the market price when notice of conversion was given, though the share price soared last week to 1.48p as the group confirmed its new mill was ready to turn on.
DekelOil said the turnkey Modipalm-designed mill, which has the capacity to extract 60 tonnes an hour of crude palm oil, would be soft commissioned on January 1 before full commercial operation starts on 15 February.
The loan note holders have also agreed to a lock-in until 29 June for the 43mln shares issued through the conversion and an additional restricted period of six months (to 29 December).
Lincoln Moore, executive director at DekelOil, said today: "The conversion of the Capital Loan Notes and the acceptance of the dealing restrictions shows confidence from the loan note holders in DekelOil's business model and importantly, represents a significant reduction in holding company debt.
“This will be positive for the company as we implement our strategy of evolving into a productive and cash generative palm oil company in Cote d'Ivoire in 2014."
DekelOil is the operator and 51% owner of the palm oil project.
The loan notes were converted at an equivalent price of 1.1p per share, a 19% premium to the market price when notice of conversion was given, though the share price soared last week to 1.48p as the group confirmed its new mill was ready to turn on.
DekelOil said the turnkey Modipalm-designed mill, which has the capacity to extract 60 tonnes an hour of crude palm oil, would be soft commissioned on January 1 before full commercial operation starts on 15 February.
The loan note holders have also agreed to a lock-in until 29 June for the 43mln shares issued through the conversion and an additional restricted period of six months (to 29 December).
Lincoln Moore, executive director at DekelOil, said today: "The conversion of the Capital Loan Notes and the acceptance of the dealing restrictions shows confidence from the loan note holders in DekelOil's business model and importantly, represents a significant reduction in holding company debt.
“This will be positive for the company as we implement our strategy of evolving into a productive and cash generative palm oil company in Cote d'Ivoire in 2014."
DekelOil is the operator and 51% owner of the palm oil project.