In July, the independent oil and gas exploration and production company said its planned subscription of
The company said at the time that 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
Global Power Sources told Ascent that the transfer could not be completed as
A condition of the subscription was that up to
As a result of the subscription not being completed, the conversion and redemption of its 2013 and 2014 convertible loan notes has also not yet taken place.
On Monday, Ascent said that GPS has started legal proceedings against WRS for non-performance of its obligations, which meant it did not receive the key funds necessary to pay Ascent.
The company also said that it believes GPS is doing all it can to improve the situation but that it plans to start legal proceedings against GPS and others in the event that it has to pursue a different funding plan and a loss incurs.
Ascent said this could happen if the alternative funding is raised on less favourable terms, or due to the costs associated with the subscription.
GPS currently holds 21.1% of the issued share capital of Ascent, and on a fully diluted basis would hold 11.4%, making it the company's second largest shareholder.
The company also announced that the permitting phase of its Petišovci project in
Ascent said that the decision to build a new high voltage power line near its gas processing plant resulted in several months delay and further delays have been caused by considerable uncertainty and conflicting legal advice on the applicability of new EU regulations regarding competitive tendering for all parts of the construction phase for a new gas processing plant.
The company said its expectation is that the permitting required for phase one of the Petišovci project will be put to public consultation early in the first quarter of 2015.
However, the company did note that it has reached advanced stages of discussions over offtake agreements for the site and has submitted its integrated pollution prevention and control permit for the site, among other development achievements.
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