Bahamas Petroleum Company PLC Bahamian Mutual Fund Initiative Update (7650Y)
January 06 2020 - 2:00AM
UK Regulatory
TIDMBPC
RNS Number : 7650Y
Bahamas Petroleum Company PLC
06 January 2020
6 January 2020
Bahamas Petroleum Company plc
("Bahamas Petroleum" or the "Company")
Bahamian Mutual Fund Initiative Update
Bahamas Petroleum Company, the oil and gas exploration company
with significant prospective resources in licences in The
Commonwealth of The Bahamas, is pleased to provide the following
update on the creation of a Bahamian domiciled mutual fund.
Highlights
-- Bahamas Petroleum to provide qualifying Bahamian investors
with the option to share in the outcome of the project to explore
for hydrocarbons in The Bahamas, should they so wish
-- Professional Mutual Fund (the "Fund") incorporated, licenced
and open to subscriptions by qualifying institutional investors
from 6 January 2020 until 7 February 2020
-- Bahamas Petroleum to provide up to 100m new ordinary shares
to the fund at the previous Open Offer price of 2 pence per share,
thereby providing relevant investors in The Bahamas equal pricing
to that offered to other shareholders
As previously announced on 28 November 2019, the Company
appointed Leno Corporate Services Limited ("Leno") to advise on the
creation of a Bahamian domiciled mutual fund investment vehicle
(the Fund) with the sole mandate of owning BPC shares for the
benefit of Bahamian investors. The Company is now pleased to
announce that the Fund has been incorporated, licenced as a
"Professional" Fund, and will be open for receipt of initial
subscriptions from 09:00 EST today. The initial subscription period
will end on 7 February 2020, whereby the proceeds received from
investor subscriptions will then be utilised for the purchase of
ordinary shares in Bahamas Petroleum. Thereafter, subscriptions and
redemptions will be processed on a monthly basis, or more
frequently if felt appropriate by the Fund, whereby any additional
proceeds raised by net subscriptions will be used to purchase
ordinary shares in Bahamas Petroleum, either directly in the form
of new shares issued by the Company (should it agree to do so) or
existing issued shares on the AIM market of the London Stock
Exchange ("AIM").
Under the terms of the Fund Investment Memorandum, a copy of
which can be found on Leno's website at www.lenobahamas.com, the
Company has agreed to issue up to 100 million ordinary shares at 2
pence per share to the Fund, being the same price as that offered
to the existing shareholders of the Company who were eligible to
participate in the recent Open Offer. If the Fund were to be issued
this number of shares in full, gross proceeds to the Company would
be the equivalent of GBP2 million (received in Bahamian dollars),
and the Fund would hold approximately 4.47 per cent of the enlarged
issued share capital of BPC following issuance of these new shares.
To the extent that the initial subscription proceeds of the Fund
exceed this predefined amount, the Fund may either request to
acquire additional new shares directly from the Company (should the
Company agree to issue such shares), or the Fund may seek to
purchase existing shares openly on AIM, making the required market
disclosure in either scenario.
The Company has agreed to fund the set up costs and first year
of the Fund's operating expenses up to a maximum of B$50,000, as an
additional expression of support for the Fund's objective, being to
provide a mechanism whereby Bahamian investors are able to invest
in the Company and thereby have an interest in the outcome of the
planned upcoming exploration well.
The Fund has initially been licenced as a "Professional" fund,
such that qualifying professional / institutional investors will be
able to subscribe for shares in the Fund. However, Leno intends to
make application to the Bahamian Securities Commission (the "SCB")
for reclassification of the Fund as a "Standard" fund, which would
allow participation in the Fund by non-professional retail
investors in The Bahamas, should such approval be granted. The SCB
will arrive at a decision on this application in due course and the
Company will provide further updates on this process when
appropriate.
Full details of the Fund, including the Fund's Investment
Memorandum and constitutional documents, may be found on Leno's
website at
https://www.lenobahamas.com/images/pdf-docs/BPC_Bahamas_Fund_PPM.pdf.
For all inquiries as to how to subscribe for shares in the Fund
please contact funds@lenobahamas.com.
Simon Potter, Chief Executive Officer of Bahamas Petroleum
Company, said:
"It has long been the Company's intention to provide Bahamians a
means of investing directly in this nationally significant project.
Whilst the royalty regime under which BPC operates ensures economic
value for the people of the Bahamas via government revenues, the
mutual fund initiative will allow Bahamian individuals to hold a
stake in the outcome of this exciting and potentially
transformational project, and thus to personally benefit should the
project be successful."
For further information, please contact:
Bahamas Petroleum Company plc Tel: +44 (0) 1624
Simon Potter, Chief Executive Officer 647 882
Strand Hanson Limited - Nomad Tel: +44 (0) 20
Rory Murphy / James Spinney / Jack Botros 7409 3494
Shore Capital Stockbrokers Limited Tel: +44 (0) 207
Jerry Keen / Toby Gibbs 408 4090
CAMARCO Tel: +44 (0) 20
Billy Clegg / James Crothers 3757 4983
www.bpcplc.com
END
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