Green Dragon Gas Ltd., which is listed on the London Stock Exchange (LSE) and is one of the largest independent companies involved in the production and sale of Coal Bed Methane (CBM) gas in China, has secured an extension of the put option from GIC, Singapore’s sovereign wealth fund.
The put option is attached to the $50 million convertible bond due on 31 December 2020, and has now been extended from 26 June 2017 to 27 October 2017.
The bond is partially convertible into ordinary shares at a one-time redemption option exercisable by GIC at a conversion price of $2.83 per share. GIC currently owns 5,775,578 shares or 3.7 per cent of the company and is restricted to a maximum of 10,775,578 or 6.69 per cent following such conversion.
At final maturity of the Bond, GIC has the right to require the company to purchase its conversion shares at a price based on the 90 day VWAP calculated as of 31 December 2020 and to be settled prior to 30 April 2021.
Randeep S. Grewal, chairman and founder of Green Dragon Gas, commented: “We are very pleased with the continued support from GIC. The extension of the put option exercise date allows the company to focus our efforts on executing our strategic objectives, outlined in our annual report, which is to monetise the company’s substantial unrecognised value for our stakeholders. We are confident in achieving these objectives.”
Green Dragon Gas is listed on the main market of the London Stock Exchange. It holds six production sharing agreements with strong, highly capitalised Chinese partners including CUCBM (CNOOC), CNPC and PetroChina, and has infrastructure in place to support multiple routes to monetise gas production.