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Terraoil Swiss Announces Conversion of CHF 15 Million Convertible Loan into shares

Terraoil Swiss AG, the uniquely positioned onshore Albanian oil producer, is using a broad portfolio of financing instruments to safeguard corporate growth. ln June 2019, Terraoil successfully completed the private placement of a CHF 15 million Convertible Loan. Shortly after, in December 2019, the Convertible Loan subscriber gave notice that it will convert the full balance of the subordinated loan into Terraoil Swiss shares. This early conversion indicates confidence in the Company’s business model and draws the market’s attention to Terraoil’s attractively priced shares.

The conversion will be implemented via the issue of new shares upon approval in the Company’s Extraordinary General Meeting, which is to be held on 17 March 2020.

The conclusion of this transaction will be advantageous to the Company as it will reduce long-term debt and increase equity by CHF 15 million.

Terraoil’s equity ratio will also strongly benefit from the loan conversion and will rise to 74% of total debt plus equity in the preliminary, unaudited 2019 IFRS balance sheet.

This conversion of long-term debt to shares demonstrates the faith of the subscriber in the Company’s business model and favourable future. It also greatly improves the balance sheet by reallocating CHF 15 million from debt to equity which benefits all shareholders.

Peter Krempin, Chief Executive Officer