XState Resources - Subscription Agreements - Partial Funds Remitted
Xstate Resources Limited (ASX:XST) has announced that the vendors of the Los Angeles Basin assets have granted extra time to complete the acquisition, following delays in the receipts of funds from Indonesia. The Company has received bank transfer confirmations totalling A$19.3m out of A$25m committed. The remaining funds are expected to be remitted over the coming weeks.
Summary
- Sanston has advised Xstate that the investors have remitted gross funds of approximately A$19.3m (US$14.5m) under their Unconditional Binding Subscription Agreements.
- Sanston has advised that whilst there continue to be further delays with the transfer of the balance of the subscription amount, additional funds are expected to be remitted in the coming weeks.
- Xstate advises the Vendor of the Los Angeles (“LA”) Basin assets understands these delays are beyond the Company’s control and has provided additional time under the Purchase and Sales Agreement (“PSA”) for Xstate to meet financial close.
- As previously announced, Xstate had entered into Binding Subscription Agreements A$25m at 3.8 cents per share to fund the Company’s Los Angeles Basin acquisition.
Xstate Resources Limited (ASX:XST) (“Xstate” or “the Company”) provides an update in relation to the Subscription Agreements funding announced on 19 December 2016.
The Company advises it is in possession of international banking transfer confirmations of funds totaling approximately A$19.3m (US$14.5m) from the investors representing 77% of their total commitments under the Unconditional Binding Subscription Agreements as at February 20, 2017.
Xstate is pleased to advise the vendor has provided the Company with additional time to acquire its working interest in the LA Basin assets.
The Company will keep the market fully informed of any further changes.
