Lekoil’s shares resume trading on London Stock Exchange as suspension is lifted

Shares of Nigerian marginal field operator, Lekoil Limited which was suspended from trading on the London stock exchange over doubts of the validity of a proposed $184 million project financing from the Qatar Investment Authority, has resumed trading, the company has said.

The company announced this in a release on its website. “Trading on AIM for the under-mentioned securities was temporarily suspended. The suspension is lifted from 14/01/2020 07:30 am, an announcement having been made,” the company said.

Lekoil reportedly paid $600,000 to Seawave Invest Limited which introduced a group claiming to be Qatar Investment Authority and arranged the previously announced $184 million financing deal.

On January 2, Lekoil announced it had entered into a binding loan agreement with Qatar Investment Authority – with the deal arranged by independent consultancy Seawave Invest Limited.

Lekoil Monday told investors that it had now been approached by representatives of the Qatari Investment Authority questioning the validity of the loan agreement. In a stock market statement, the AIM-quoted company said: “Lekoil is urgently seeking to establish, alongside its legal counsel and nominated adviser, the full facts of this matter, and pending this clarification, the company has requested that its ordinary shares be suspended from trading on AIM with immediate effect”.

Lekoil said that its financial exposure to the previously announced $184 million financing agreement currently stands at $600,000, which was the amount paid to Seawave as an initial arrangement fee, in its capacity as introducer to those purporting to be the QIA and lead adviser to the company in relation to the facility agreement, and associated legal fees. No money has been paid to the ‘presumed counterparty,’ Lekoil said.