Pantheon Resources Announces Quarterly Repayment of Convertible Bonds
London, United Kingdom – March 17, 2025
Pantheon Resources plc (Pantheon or the Company), an AIM-quoted oil and gas company, has announced that it will make the quarterly repayment for its senior unsecured convertible bonds issued in December 2021 by Heights Capital Ireland LLC. The Convertible Bonds, with a maturity date in June 2026, require the Company to make quarterly principal and interest payments.
Quarterly Repayment Details
The Company has elected to settle the quarterly principal repayment of US$2.45 million and the quarterly interest payment of US$0.147 million (collectively, the “Quarterly Repayment”) through the issuance of new ordinary shares. A total of 3,629,122 new ordinary shares (the “New Ordinary Shares”) will be issued in full settlement of this Quarterly Repayment.
Impact on Pantheon
This repayment method allows Pantheon to conserve its cash reserves while maintaining its financial obligations. By issuing new shares, the Company does not have to utilize its existing cash reserves to meet the repayment. This strategy could be beneficial for Pantheon in the long run as it can allocate its cash towards exploring new opportunities and expanding its operations.
Impact on Heights Capital Ireland LLC and Shareholders
The conversion of debt into equity will dilute the existing shareholders’ ownership in the Company. The new shares issued will be added to the existing share capital and will rank pari passu with the existing ordinary shares of the Company. The dilution effect may impact the share price in the short term, but the long-term impact will depend on the Company’s financial performance and future growth prospects.
Impact on the Oil and Gas Industry
The decision by Pantheon to issue new shares in lieu of cash repayments is not an uncommon practice in the oil and gas industry. Given the volatile nature of commodity prices and the capital-intensive nature of the industry, companies often opt for share issuances to meet their debt obligations. This trend could continue as companies look for ways to conserve cash and maintain financial flexibility.
Conclusion
Pantheon’s announcement of the quarterly repayment of its Convertible Bonds through the issuance of new shares is a common practice in the oil and gas industry. This strategy allows companies to conserve cash reserves while maintaining their financial obligations. However, the issuance of new shares can dilute the existing shareholders’ ownership and impact the share price in the short term. The long-term impact on the Company and its shareholders will depend on its financial performance and future growth prospects. The trend of issuing new shares to meet debt obligations could continue in the industry as companies look for ways to maintain financial flexibility.
- Pantheon Resources plc announces quarterly repayment of Convertible Bonds through new share issuance
- Total of 3,629,122 new ordinary shares to be issued
- Beneficial for Pantheon to conserve cash reserves
- Dilutes existing shareholders’ ownership and may impact share price
- A common practice in the oil and gas industry to maintain financial flexibility
