The Board of Directors of Dome Energy has drawn up a plan to restore the share capital

Dome Energy AB (https://www.domeenergy.com)’s (publ) (herein after “Dome” and/or “the Company”) Board of Directors called for an Extraordinary General Meeting on October 5, 2020, to decide that the US subsidiaries, in which the Company’s operations are consolidated, are sold to three lenders against offsetting their loan claims. This sale is subject to the so-called “Leo lag”, which requires a 90% majority. Such Extraordinary General Meeting will be held on 19 October 2020 at 13.30.

Since the value of this transfer, just over SEK 41 million, is less than the book value of the subsidiaries of the parent company, there appears to be a risk that the Company is technically in solvent. The Board of Directors is well aware of this situation and has therefore drawn up a plan to restore the share capital.

Step 1 All internal transactions between the parent company and subsidiaries are written off in both directions. This entails a small piecework gain for the parent company.

Step 2 Remaining creditors are offered to convert their loan receivables into equity through a directed issue. This entails an increase in equity of approximately SEK 4 million.

Step 3 Call a new Extraordinary General Meeting to reduce the share capital to approximately SEK 500,000 without withdrawal of shares. This requires an amendment to the Articles of Association, which must be decided at a new extraordinary general meeting, which the Board of Directors intends to convene shortly with a 4-week notice.

Although step 2 of the plan described above has not yet been set out in detail, the Board considers itself sufficiently confident that it will be established and has therefore considered it not necessary to draw up a balance sheet.

In addition, soundings are under way with various parties about a cash enhancement of equity through a rights issue or directed issue. These soundings are not finished yet.

In parallel with this, soundings are underway to launch a new cash flow positive business in a completely different industry. The Board hopes to be able to give further details of these plans to the Meeting on 19 October.

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 8th, 2020 15:00 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.