Maple Energy has entered into a standby equity distribution agreement (the “SEDA”) with YA Global Master SPV Ltd (Yorkville), an affiliate of Yorkville Advisors LLC, an international investment group headquartered in the United States.

Yorkville has agreed to a firm commitment to subscribe for up to US$30 million of the Company’s ordinary shares (“Ordinary Shares”), subject to the other terms and conditions within the SEDA (the “Firm Commitment”). The SEDA allows Maple to draw down funds in tranches - at its own discretion and for a period not to exceed 30 months - in exchange for the issue of new equity under the terms outlined in the appendices below.

Furthermore, as part of the SEDA, Yorkville has also subscribed for 247,933 Ordinary Shares (the “Subscription Shares”) at a purchase price of US$0.01 per Ordinary Share. Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM. It is expected that admission will become effective and that trading will commence on 10 November 2009. Following the issue of the Subscription Shares, Maple’s total issued ordinary share capital will be 89,494,987 Ordinary Shares.

Maple has entered into the SEDA, and intends to use any proceeds generated as a means of raising additional working capital, including for the Ethanol Project, and for general corporate purposes.

Concurrent with the execution of the SEDA, Yorkville entered into a share lending agreement (“Share Lending Agreement”) with Maple’s chief executive officer, Rex Canon, and Interline Enterprise S.L.U., which is beneficially owned by Carlos A. de la Guerra Sison, an executive director of the Company (the “Shareholders”), whereby Yorkville will borrow up to 819,672 Ordinary Shares from the Shareholders for the term of the SEDA.

Rex Canon, CEO of Maple Energy, said, “We are very pleased to announce this firm commitment financing with Yorkville. The facility is entirely discretionary and can be drawn upon as required or desired giving Maple certainty and flexibility of funding. Furthermore, the capital can be accessed quickly and at attractive pricing enabling Maple to respond to new opportunities and funding requirements as and when they appear. As an integrated energy company, Maple has a wide range of interests and assets across Peru, including our exciting Ethanol Project, and we believe this new equity financing facility further strengthens our capital position as we seek to deliver on our strategy and enhance value for our shareholders.”

Tags: Maple Energy plc