The Board of Directors proposes that the Annual General Meeting approve divestment of all shares in the wholly owned subsidiaries Dome Energy, Inc., org.nr. 76-0667500, Sycamore Oil & Gas, Inc org.nr. 82-4674954 and Ginger Oil Company org.nr. 76-0040293, all registered in Texas, USA (the “Subsidiaries”) to the Company’s major creditors.
In August 2018, the company entered into loan agreements with some of the Company’s major shareholders, including their related parties, for a total amount of approximately SEK 46 million. The loans were due on August 31, 2020 and the Company announced in connection with the agreement between the Company and the creditors for an extension of the loans until 15 November 2020.
In view of the above and the fact that the Company does not have, or will have funds to repay the loans to the creditors on the due date (15 November 2020), the Company and the creditors have now agreed on a solution for large parts of the debt that involves the sale of all shares in the Subsidiaries to most of the creditors for a preliminary amount of SEK 41,280,806 plus accrued interest.
“We are pleased to announce that we have agreed with the major creditors to divest the shares in the Subsidiaries to them, which means that the Company’s liabilities will decrease significantly and I hope to announce a new exciting deal for shareholders soon.”, comments Paul Morch, CEO Dome Energy.
Given that the above proposal is approved at the Meeting, the Company is without operational activities. For some time now, soundings and negotiations have been underway to open a new business in the Company, which in connection with this will change its name and direction of operations. The Board of Directors hopes to present such a deal to shareholders shortly and intends to convene an extraordinary general meeting to present the structure and to request a mandate to carry out such a deal. In connection with this, the Company will draw up an Information Memorandum describing the new business.
The Decision is subject to the provisions of Chapter 16. (2005:551) and therefore requires the assistance of shareholders with at least nine tenths of both the votes cast and the shares represented at the Meeting.
Further background and full proposal for a resolution, notice of a general meeting and proxy form will be available at the Company’s offices, Dome Energy AB (publ), Johannesgränd 2, 111 30 Stockholm and on the Company’s website (www.domeenergy.com) no later than two weeks before the Annual General Meeting and sent to the shareholders who request it and provide their postal address.
Shareholders present at the Annual General Meeting have the right to request information in accordance with Chapter 7. Section 32 of the Swedish Companies Act (2005:551).
For further information, please contact:
Paul Morch, CEO
Phone: +1 713 385 4104
E-mail: [email protected]
This information is the kind of information that Dome Energy AB (publ) is obliged to publicize according to EU Market Abuse Regulations (MAR). The information was publicized, by the above contact person October 5th, 2020 08.30 CEST.
About Dome Energy
Dome Energy AB. is an independent Oil & Gas Company publicly traded on Nasdaq First North Growth Market in Sweden (Ticker: DOME (http://www.nasdaq.com/symbol/els/dome)). Mangold Fondkommission AB, phone: +46 8 503 01 550, [email protected] is the Company’s Certified Adviser. Headquartered in Houston, Texas, the Company’s focus is on the development and production of existing onshore Oil & Gas reserves in the United States. For more information visit www.domeenergy.com.
The information in this press release does not constitute an offer to acquire, subscribe for or otherwise trade in shares or other securities of the Company. No action has been taken and no action will be taken to allow an offer to the public in any jurisdiction other than Sweden. The information contained in this press release may not be published, published or distributed, directly or indirectly, within or to the United States (including its territories and provinces, each state in the United States and the District of Columbia) (“United States”), Canada, Australia, Japan, Hong Kong, Switzerland, New Zealand, Singapore, South Africa or any other jurisdiction where such action would be illegal, subject to legal restrictions or require measures other than those under Swedish law.
Actions contrary to this instruction may constitute a violation of applicable securities laws. No shares or other securities of the Company have been registered, and no shares or other securities will be registered, as per the United States Securities Act of 1933 (“U.S. Securities Act”) or the securities laws of any state or other jurisdiction in the United States and may not be offered, sold or otherwise transferred, directly or indirectly, in or to the United States, except in accordance with an applicable exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with the securities laws of the relevant State or other jurisdiction of the United States.