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Ascent Resources Says It Has Failed To Receive Subscription Funds

July 9, 2014

Tom McIvor

LONDON (Alliance News) - Ascent Resources PLC Wednesday said its planned subscription of GBP15 million in equity funding has not been completed after the investor failed to receive key funds required to make the cash transfer.

The independent oil and gas exploration and production company said Global Power Sources SrL, a company which agreed terms to the major investment in May via a subscription for new shares at a price of 0.8 pence each, has not received key payments from its joint venture partner, Salomon Partners WRS Werner Rothschild & CIE Ltd, in order to complete the initial subscription payment.

Global Power Sources told Ascent that the transfer could not be completed as Salomon Partners failed to receive regulatory clearances and, as a result, the subscription has not been completed.

A condition of the subscription was that up to GBP7.4 million of the proceeds of the first tranche would be used to fund an offer by the company to holders of its 2013 convertible loan notes to repurchase and cancel up to 50% of the outstanding principal amount of the loan notes, at a price of 300 pence per GBP1 of principal.

As a result of the subscription not being completed, the conversion and redemption of its 2013 and 2014 convertible loan notes has not yet taken place.

Ascent said it is in discussions with Global Power Sources and Salomon Partners regarding the timing and receipt of the funds to complete the subscription.

However, it added that it is also now in discussions with alternative providers of funding, including current stakeholders, in the event that the funds are not received in a reasonable timeframe.

Ascent Resources shares were down 17% to 0.600 pence, putting it in the top three AIM All-Share fallers on Wednesday.

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Source: Alliance News

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