LNG Limited (LNGL) has released a financing update advising its shareholders of the following:
- LNG-9 PTE LTD (LNG9) has notified LNGL that it considers that events including the failure of First Wall Street Capital Corp. to provide funding under the legally binding Secured Convertible Note Subscription Deed (as announced by LNGL on 27 March 2020) are reasonably likely to have a material adverse effect on LNGL and that certain conditions under its proposed takeover bid have been triggered or are incapable of being satisfied.
- In light of the above circumstances, LNG9 has notified LNGL that it does not intend to despatch its Bidder’s Statement to LNGL shareholders and is therefore withdrawing its takeover bid in reliance on section 670F of the Corporations Act 2001 (Cth).
- LNGL understands from LNG9 that LNG9 remains interested in acquiring all or a material part of LNGL or its assets, and LNGL will continue to work with LNG9 to find a mutually acceptable transaction structure. However, LNG9’s exclusivity period has lapsed with the retraction of their bid (and LNGL has now terminated the Bid Implementation Agreement dated 27 February 2020).
- In addition to ongoing discussions with LNG9, the Company is now working with other parties on strategic alternatives that supplement existing cash on hand to improve LNGL’s working capital position and sustain its operations.
- LNG Management Services LLC, a wholly owned U.S. subsidiary, has received a Paycheck Protection Program (PPP) loan from the United States Small Business Administration (SBA) in the amount of US$388 552.
- LNGL’s existing cash reserves are sufficient to meet all of the company’s commitments until May 2020, and LNGL must secure additional meaningful funding urgently to continue operating beyond then.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/15042020/lng-limited-releases-financing-update/