Forte Energy secures two-year loan

6th Jun 2013 11:55

Forte Energy has secured a one million dollar two-year loan facility with Dutchess Opportunity Cayman Fund.An initial drawdown of $0.6m has been received as part of the loan, which will accrue an interest of 8.0% per year."We are pleased to work with the management team at Forte Energy and to help them achieve their near and long term goals," said Douglas Leighton, Managing Director at Dutchess.Dutchess may convert 133% of the outstanding drawdown amounts plus the accrued interest into fully paid ordinary shares at 75% of the volume-weighted average market price for the 15 trading days immediately prior to the conversion date. The fund is also entitled to a commitment fee in respect of the loan which will be satisfied through the issue of more than 3.7m shares in the company.Forte has the right at any time prior to the maturity date to repay all drawdown amounts together with interest accrued thereon at a price equal to 107% of the outstanding drawdown amounts and accrued interest.An application has been made for new shares to be admitted to trading on the Australian Stock Exchange and on the London Stock Exchange's AIM. The new shares are expected on AIM around June 12th.RD