NODL: Northern Drilling Ltd announces intention to appeal arbitration awards, and provides update on financing situation
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Northern Drilling Ltd. (OAX: NODL) (the “Company”) updates on the arbitration proceedings and financing situation.
Reference is made to the stock exchange announcement dated 25 September 2023, regarding the arbitration tribunal’s awards in the arbitration proceedings between the Company’s 100 % owned subsidiaries of West Aquila Inc. and West Libra Inc. and Hanwha Ocean Co., Ltd. (“Hanwha”)(the “Awards”). The Company has decided to seek leave to appeal the Awards on a point of law and to challenge the Awards on grounds of serious irregularity.
As a general rule there are limited grounds to appeal arbitration awards, and permission of the court will be required for an appeal on a point of law to be made. If the court grants permission to appeal the Awards on a point of law, an appeal hearing will follow. However, no such permission is required to challenge the Awards on grounds of serious irregularity.
The Company requires funding to appeal and challenge the Awards. The Company intends to raise capital through one or more equity placements as further developments are made in the appeals process. The first equity placement is expected to be in the range of USD3-3.5M, but total funding needed to reach a conclusive outcome is expected to be significantly higher.
The Company holds no assets of significance other than its claims towards Hanwha, and therefore does not see a value of its equity should the Awards stand. Consequently, and in order to facilitate the required funding, the Company will summon a Special General Meeting to reduce the par value of the Company’s shares from USD 1.00 to USD 0.01. Future equity raises are expected to be done at or close to the new par value of the shares.
The Company will in due course inform the markets on its planned financing activities and the further development of the appeals process.
This stock exchange announcement was published by Scott McReaken, CEO of Northern Drilling Ltd., on 19 October 2023 at 19.13 CET. This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
Scott McReaken, CEO
+1 (832) 509 7191
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The issue, subscription or purchase of shares in the Company is subject to specific legal or regulatory restrictions in certain jurisdictions. Neither the Company nor the Manager assume any responsibility in the event there is a violation by any person of such restrictions. The distribution of this release may in certain jurisdictions be restricted by law. Persons into whose possession this release comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “strategy”, “intends”, “estimate”, “will”, “may”, “continue”, “should” and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believe that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict, and are beyond their control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not make any guarantee that the assumptions underlying the forward-looking statements in this announcement are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this announcement or any obligation to update or revise the statements in this announcement to reflect subsequent events. You should not place undue reliance on the forward-looking statements in this announcement. The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement. This announcement is for information purposes only and is not to be relied upon in substitution for the exercise of independent judgment. It is not intended as investment advice and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy any securities or a recommendation to buy or sell any securities of the Company. The distribution of this announcement and other information may be restricted by law in certain jurisdictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions. This announcement is an advertisement and is not a prospectus for the purposes of the Prospectus Regulation as implemented in any Member State.