Yorkville Advisors, the US-based alternative investment manager, has entered into a GBP15m standby equity distribution agreement on behalf of one of its funds with AIM listed San Leon Energy.
San Leon is an international group of companies focused on the exploration and production of oil and gas projects in Poland, Ireland, Italy, Morocco, Netherlands and North America.
The transaction also included a SEDA-backed promissory note for the amount of GBP2.2m. The deal was advised out of London.
San Leon Energy entered into the SEDA as a means of raising additional capital when required, to assist its company strategy to support the development of its Polish shale gas assets.
Pursuant to the terms of the SEDA, San Leon Energy has the discretion to withdraw funds of up to GBP15m in tranches in exchange for the issue of new equity for up to 36 months.
Oisín Fanning, executive chairman of San Leon Energy, says: “We are very happy with the flexibility and responsiveness that Yorkville showed in putting this instrument together which not only creates a funding option for San Leon but also minimises dilution as has been demonstrated by other oil and gas companies use of this facility. We look forward to a productive and ongoing relationship with Yorkville.”
Brian Kinane, managing director, Yorkville Advisors UK, adds: “San Leon Energy is a dynamic and ambitious company with an experienced management team and we believe our financing can support San Leon in realising the potential of its exciting Polish assets. The combination of the promissory note and SEDA provides a way for companies that are undervalued relative to their intrinsic value, to finance accretive activities upfront whilst minimising dilution.”
