Reach Energy’s shareholders have approved the proposed settlement of debt amounting to RM206.51 million at the Extraordinary General Meeting held earlier today.
The Proposed Debt Settlement entails the offset of RM206.51 million debt or 76% from a total of RM279.36 million owing to Super Racer Limited (SRL) via the issuance of 1,032,544,282 Settlement Shares to SRL at an issue price of RM0.20 per Settlement Share.
For the record, SRL will hold 1,032,544,282 Reach Energy’s Shares, representing approximately 48.5% of the enlarged issued share capital of the Company upon completion of the Proposed Debt Settlement.
To recap, Reach Energy entered into a Sale & Purchase Agreement (SPA) with Palaeontol Cooperatief U.A. and MIE Holdings Corporation on March 5, 2016 to purchase 60% interest in Palaeontol B.V. which owns Emir-Oil for the Purchase Consideration of USD175,856,539.
In accordance with the SPA, part of the Purchase Consideration which amounted to USD44,045,158.96 has been deferred and the Deferred Purchase Consideration (Debt) subject to interest of up to 14% per annum.
