Xcite Energy has increased its Standby Equity Distribution Agreement (SEDA) with YA Global Master SPV Ltd (Yorkville) by £40 million to £100 million. This is subject to TSX Venture Exchange approval.

In connection with this SEDA increase, the Company will pay Yorkville an aggregate fee of £400,000, of which £100,000 will be payable when any part of the first £20 million of this increased facility is accessed by the Company, £100,000 will be payable when any part of the second £20 million is accessed by the Company and £100,000 will be paid on 27 September 2011 in respect of each £20 million tranche that has been accessed at that time.

Prior to this SEDA increase, £27.25 million was available for draw down. Funding under the SEDA will be used as future working capital for the Company and to progress towards the first stage production of the Bentley field.

Tags: Xcite Energy