Potential Transaction and Exclusivity Update

RNS Number : 6205R

Curzon Energy PLC

01 July 2020

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

01 July 2020

Curzon Energy Plc
("Curzon" or the "Company")

Potential Transaction and Exclusivity Update

Curzon Energy plc (LON:CZN) the London Stock Exchange listed oil and gas company, announces an update regarding a potential transaction, details of which were first announced on 18 March 2020. 

The period of exclusivity originally entered into between Sun Seven Stars Investment Group ("SSSIG") and the Company and previously announced, lasted to 30 June 2020 and has been agreed to be extended by SSSIG and the Company.   Formal terms covering the extension of the exclusivity period and the nature of the additional financial support to be provided by SSSIG to the Company have yet to be finalized.   These terms and particularly the details surrounding the financial support associated with the extension, will be announced once formalised. 

The announcement on 18 March 2020 of the potential transaction contemplated a relatively short initial due diligence period, however, the full impact of the COVID-19 pandemic, resulting in lockdowns first in the UK and followed by the US, and market instability, has caused delays and disruptions to the overall due diligence process.

From 18 March 2020 to date, under the original agreement, financial support totalling £185,000 has been provided by way of a loan from SSSIG to the Company.  This loan carries a 10% interest rate per annum, is repayable in one-year and, if a potential transaction between the parties is agreed and completed, will be convertible into equity at the time of that transaction. 

The parties remain positive regarding a potential transaction and, following the conclusion of due diligence, the next steps envisaged would involve agreement on terms and then progression to definitive transaction documentation.

While the parties continue to work constructively towards a potential transaction, there can be no certainty that due diligence when complete will be positive, nor to be able to predict the length of time required to reach definitive agreement, or the likelihood of concluding a successful transaction. 

The Company will continue to update the markets on progress as appropriate. 

For further information please contact:
Curzon Energy Plc	[phone]
Scott Kaintz
www.curzonenergy.com
SP Angel Corporate Finance LLP	[phone]
Optiva Securities Limited	[phone]

 

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