Source - LSE Regulatory
RNS Number : 2787V
Ascent Resources PLC
01 December 2023
 

1 December 2023

Ascent Resources plc

("Ascent" or the "Company")

ECT Claim Distribution Update 

Ascent Resources Plc (LON: AST), the onshore energy and natural resources company, announces that, further to the announcement of 27 October 2023 and following the recent investor feedback event, it is starting a process to be able  to distribute an entitlement to the economic interest in 49% of any  net proceeds received (after all legal fees, costs and expenses relating to the claim) in the event of a successful claim outcome against the Republic of Slovenia by the Company and/or its subsidiary Ascent Slovenia Limited (together the "Claimants").

The intention of this potential distribution is to give qualifying stakeholders the opportunity of having ring-fenced access to a significant portion of the net proceeds resulting from a successful claim, which is not exposed to further changes in the capital structure of the Company. It should be cautioned that in the event the Company is successful in its claim any amount actually received by the Company may be significantly lower than the full claim.

As part of this process the Company is creating a new 100% owned subsidiary company as a special purpose vehicle (the "SPV"), with which the Claimants are expected to enter into a deed of transfer in relation to 49% of the net proceeds to be received in the event of a successful ECT claim outcome (the "Transfer"). Following the SPV receiving tax clearance from HMRC, the Company expects to convene a general meeting where the Board will request shareholder approval for a bonus issue of new preference shares or another form of distribution mechanism for qualifying shareholders on a specified record date that remains to be determined ("Special Preference Shareholders"), and which is likely to be the date of the general meeting which is expected to be in January 2024. Upon final determination of the Claimants' net proceeds resulting from any successful ECT claim, the Company will make a distribution to Special Preference Shareholders using the relevant mechanism.

The Company is finalising tax and legal advice and will make further announcements as appropriate.

 

Enquiries:

Ascent Resources plc

Andrew Dennan

Via Vigo Communications

 

WH Ireland, Nominated Adviser & Broker

James Joyce / Sarah Mather

0207 220 1666

Novum Securities, Joint Broker

Jon Belliss

 

0207 399 9400

 

 

 

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