Yorkville Advisors, the investment manager to a family of funds, has entered into a AUD10m equity line of credit agreement with European Gas, a hydrocarbon producer, developer and explo
Yorkville Advisors, the investment manager to a family of funds, has entered into a AUD10m equity line of credit agreement with European Gas, a hydrocarbon producer, developer and explorer of projects located in Europe.
European Gas entered into the equity line of credit as a means of raising additional working capital.
Pioneered eight years ago by Yorkville, an equity line of credit offers companies a low risk, cost effective way of optimising their capital structure in pursuit of their growth strategy.
The terms of the equity line of credit enable European Gas, at its discretion, to draw down funds of up to AUD10m in tranches in exchange for the issue of new equity, at a discount to the prevailing market price at each drawdown, for up to 60 months from the signing of the agreement.
Anthony McClure, managing director of European Gas, says: ‘This financing facility will aid in the next stage of development of our substantial hydrocarbon portfolio in Europe and we look forward to a very successful relationship with Yorkville Advisors.’
Philip Ho, senior managing director of Yorkville Advisors, says: ‘We are excited by the compelling story of European Gas and about its plans over the next couple of years as it advances the development and production at Gazonor and Lorraine coal mine and coal bed methane projects.’