This announcement is not an offer of securities for sale, or an offer to buy or subscribe for, directly or indirectly, securities to any person in the United States or any other jurisdiction, including in or into Canada, Japan, South Africa, Switzerland and Australia or any other jurisdiction in which such offer or solicitation is unlawful. This announcement is an advertisement and not a prospectus (or prospectus equivalent document). Neither this announcement nor any part of it shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.
Update on Financing Requirements and Possible Sources of Financing
Further to the announcement by Chagala Group Limited (the “Company” or “Chagala”) made on 3 November 2016, the Company makes the following announcement to provide further clarification as to its current financing requirements and possible sources of financing.
Since 29 September 2106, when the Company’s placing and open offer transaction that was announced on 6 September 2016 lapsed and was terminated, the Company has sought new debt finance in order to repay the KZT Bonds. However, Al Hilal Bank, with whom the Group has existing credit facilities, has informed the Company that if the Group is to obtain new debt finance for the purpose of repaying the KZT Bonds, then it will be required, under the terms of such credit facilities, to repay all of its existing debt to Al Hilal Bank. As a result, the Group has been seeking to secure new debt financing that will enable it repay both the KZT Bonds and the Al Hilal Bank indebtedness, which it currently estimates would need approximately US$14 million of new financing.
The Company is currently in advanced discussions with potential lenders with regard to obtaining new debt financing for the Group. However, based on discussions with the potential lenders, the Company currently anticipates that the maximum amount of any new debt financing which may become available to it will be less than the approximately US$14 million required as described above.
Accordingly, the Company is considering a new placing and open offer transaction in order to raise equity finance to make up the potential shortfall. In preparation for the possibility that it may need to raise equity financing by this means, the Company is seeking a review by the British Virgin Islands Commercial Court of the terms of the existing injunctions with a view to ensuring that any such equity financing transaction can proceed.
There can be no certainty that the Group will secure new debt financing or that, if it is secured, it will be in an amount sufficient to enable the Group to refinance its indebtedness to Al Hilal Bank and to repay its KZT Bonds when they mature on 1 December 2016. There can also be no certainty that a placing and open offer transaction, if permitted by the Court, will be completed or, if completed, that it will provide the Group with sufficient funds to meet its financing requirements.
For more information:
|Francisco Parrilla, Chief Executive|
|Chagala Group Limited||+ 7 (727) 355 04 84|
Chagala is a service company focused on providing long and short term accommodation solutions to domestic and international oil and gas companies developing Kazakhstan’s largest hydrocarbon discoveries. With the ownership of hotels, guest houses, serviced apartments, remote site facilities, restaurants and offices in its portfolio, Chagala is well positioned to capitalize on the oil and gas investment being made in Kazakhstan.
This announcement is not an offer of securities for sale in the United States, and is not for publication or distribution, directly or indirectly, in or into the United States of America. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration under the Securities Act. No public offering of securities is being made in the United States.