Roxi Petroleum has outlined its plans for a merger and debt-free future.
The Central Asian oil and gas company, with a focus on Kazakhstan, has agreed to merge Roxi’s and Baverstock’s interests in Eragon, which holds an indirect 99% interest in the company’s principal asset, BNG.
The merger is to be achieved by Roxi increasing its effective shareholding in Eragon from 59% to 100%, thereby increasing Roxi’s interest in the BNG contract area from 58.41% to 99%.
Subject to the terms and conditions of the merger agreement, Roxi has agreed to allot 651,436,544 new ordinary shares to Baverstock. A further 80,804,200 conversion shares are to be issued to Kuat Oraziman pursuant to the Conversion of Vertom Loan, as detailed below. Together these new ordinary shares will represent 43.86% of the company’s Enlarged Share Capital.
Clive Carver, chairman of Roxi, said:”The proposed merger has been longed planned and once completed will bring 99% of our principal asset BNG under our direct control removing any funding constraints associated with maintaining the current structure.
“Additionally the capitalisation of some $10million of debt would not only make the group essentially debt free but also demonstrates the continued belief and commitment of the companies leading investors to it ultimate success.”