UK Oil & Gas Investments has entered into a £10m loan agreement with Cuart Investments, a consortium arranged by Riverfort Global Capital.
A first tranche of £7.5m has been drawn down by the company, with a second tranche of £2.5m due to be drawn down on 31 December.
The first and second tranches are repayable on 13 November 2019 and 31 December 2019, respectively.
The loan attracts 0% interest and may, at the sole discretion of the investors, be converted into new ordinary shares in the company.
The conversion price is the lower of either a share price of 8p, or 90% of the lowest daily volume weighted average price during the five days prior to the conversion date.
At 9:22am: (LON:UKOG) UK Oil Gas Investments Plc share price was -0.1p at 4.8p