Andalas Energy & Power (ADL) – Settlement of loan note, placing and notice of EGM

Andalas Energy and Power plc (AIM:ADL) is pleased to announce that it has conditionally raised £1,050,000 via a placing of 1,615,384,615 ordinary shares of nil par value at a price of 0.065 pence per share.

The proceeds will be used to repay the outstanding Sandabel Capital LP loan note.  Andalas will also use the proceeds to fund its ongoing work programme with PT PP Energi (“PP Energi”), a subsidiary of PT PP (Persero) Tbk (‘PTPP’), the Indonesian state-owned construction and engineering company, to advance a 30+MW independent gas-fired wellhead power facility in Jambi Province, South Sumatra, and also to develop further projects.

David Whitby, CEO of Andalas Energy and Power plc commented: “Following the recent announcement of our first project with PP Energi, this placing strengthens our balance sheet by fully settling the outstanding loan note with Sandabel Capital.  At the same time it provides the Company with additional funds as we look to progress both the Jambi-1 development project with PP Energi as well as other potential opportunities being developed with Pertamina, Indonesia’s national energy company.”

Posting of Shareholder Circular and Notice of Extraordinary General Meeting (“EGM”)

The Placing comprises a placing of 900,000,000 shares (£585,000) placed pursuant to existing authorities granted to the Directors (“Unconditional Placing Shares”) and a placing of 715,384,615 shares (£465,000) (“Conditional Placing Shares”) conditional, inter alia, on the passing of a relevant resolution at an extraordinary general meeting of the Company (“EGM”).  A circular containing a Notice of EGM will be sent to shareholders on Tuesday 15 August 2017.

Shareholders should read the full text of the Notice of EGM.  A copy of the Notice of EGM is available on the Company’s website (www.andalasenergy.co.uk) and is available for inspection at the Company’s registered office at IOMA House, Hope Street, Douglas, Isle of Man, IM1 1AP.

The EGM will be held at 11am on 31 August 2017 at the Company’s registered office at IOMA House, Hope Street, Douglas, Isle of Man, IM1 1AP.  The purpose of the EGM is to consider and, if thought fit, to pass the resolutions necessary to authorise and issue the Conditional Placing Shares.

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM.  It is expected that dealings in the Unconditional Placing Shares will commence on or about 17 August 2017 (“First Admission”) and it is expected that dealings in the Conditional Placing Shares will commence on or around 31 August 2017 (“Second Admission”) subject to the passing of the necessary Resolutions at the EGM.

In connection with the Placing, the Company has agreed to issue 161,538,462 5 year warrants to third parties, with an exercise price of 0.065 pence per warrant, following the passing the EGM resolutions.

Total voting rights

Following the First Admission but before the Second Admission, the Company’s issued share capital will consist of 3,993,167,975 ordinary shares of nil par value, with each Ordinary Share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. This figure of 3,993,167,975 Ordinary Shares may therefore be used by shareholders in the Company, between the dates of First Admission and Second Admission, as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules (“DTRs”).

Following the Second Admission the Company’s issued share capital will consist of 4,708,552,590 Ordinary Shares, with each Ordinary Share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. This figure of 4,708,552,590 Ordinary Shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the DTRs.

EXPECTED TIMETABLE OF PRINCIPAL EVENTS

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR).  Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

For further information, please contact: