’s £3.5m Convertible Loans Notes Facility (CLN), released in March 2018, lapsed on December 31st 2018 without the company calling on providers of the facility to subscribe for any of the Convertible Loan Notes. Initially the CLN was intended to aid the company's participation in drilling of the Wick well in the UK.
A drawdown of the £3.5 CLN became unnecessary after UPL’s successful fundraising of £3m in June 2018 which, when added to the company’s existing cash resources, led UPL directors to consider it “unlikely to need to have this [CLN] available to it.”
The news not only reveals the company’s stable cash resources but is also a positive sign for existing UPL shareholders. By allowing the CLN to lapse, UPL have avoided diluting the value for their existing shareholders as they will not have to create new shares as a return for new investors.
The news of preserved share value and comfortable cash resources has been met with an 8% increase in share price.
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