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LONDON (Alliance News) - Ironveld PLC Friday said a number of directors and contractors have accepted new shares in the company as payment for their services in 2014.
The shares are being issued for services provided by the directors between February 1, 2014 to December 31, 2014. Ironveld said the conversion of cash fees into shares is to "manage the company's cost base and minimise the cash outflows from the business," it said in a statement.
The company is converting GBP165,000 worth of fees into over 2 million shares to four directors, who are receiving 500,052 shares each, at a price of 8.25 pence per share, which was the average share price of Ironveld during the period between February 1 and December 31.
Following the transaction, Finance Director Nick Harrison has increased his stake to over 11.9 million shares, representing 3.98% of the issued share capital. Non-Executive Director Giles Clarke has seen his shareholding increase to 16.8 million shares, or 5.56%.
Audit and Remuneration Committee member Terry McConnachie now holds 837,557 shares in Ironveld, representing around 0.28% of the company's issued share capital whilst Non-Executive Director Rupert Fraser, who did not own any shares prior to the deal, holds 500,032 shares, which represents around 0.17% of the issued share capital in the company.
In addition, the company has finalised arrangements with a number of contractors to convert fees owed to them into shares. Ironveld will convert GBP44,061 of fees into 568,528 shares, issued at a pre-agreed price of 7.75 pence per share.
Ironveld shares closed down 0.4% to 5.97 pence per share on Friday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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