Po Valley raises funds for Italian operations

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Po Valley Energy Limited has secured funding of $2.5m through the issue of a convertible note with a conversion price of $0.042 per share and a maturity of three years.

The ASX-listed company said the funds will be used to expedite a final investment decision for its successfully drilled onshore Selva field in Italy and to complete seismic work on its large oil condensate/gas Torre del Morro explorations licence.

Company directors Kevin Bailey and Michael Masterman both intend to participate in the note issue for $700,000 and $300,000 respectfully, subject to shareholder approval, Po Valley said.

“Shareholder approval will be sought at the Company’s AGM planned for 30 May 2018. If these convertible notes are approved and issued the maximum number of PVE shares to be issued on conversion would be 16,666,667 shares to Mr Bailey and 7,142,857 shares to Mr Masterman,” Po Valley said in a market update.

“The first $1.5m has been placed to institutional and sophisticated investors with the receipt of the funds and the issue of the convertible notes expected to be completed in the first two weeks of May. If these convertible notes are ultimately converted to PVE shares the maximum number of PVE shares to be issued will be 35,714,286. The convertible notes will be issued under the company’s placement capacity and ratified subject to shareholder approval at the upcoming AGM.

“The convertible notes will have a conversion price of 4.2c per share which is a 2.4% premium to PVE’s current share price, a 3 year maturity expiring May 2021 and a coupon interest rate of 8% per annum (to be paid in cash at 6 monthly intervals). The notes will be redeemable by PVE prior to conversion with 30-days notice.”

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