Financing2 May 2020 13:12
I have just been (belatedly) reading the detail of the April 15th Financing RNS.
Really quite interesting and fairly convoluted. It seems that the limit on the number of additional shares that the company can issue without getting permission from shareholders has required a fairly complex structure to the fund raise. Such permission is going to be sought at the AGM this year. As such, there has been a limit of 27,250m placement shares with further convertible loan notes and warrants dependant on the shareholder authorsation.
So, we have a placing of 27,250m shares at 0.8p/s raising £218,000
Loan notes of £140,500 (which may be converted to 17,562.5m shares by 31/3/21)
"A" warrants, which if exercised (at 1p/s within 3 yrs) would raise £175,625 for a further 17,562.5m shares
"B" warrants, which if exercised (at 2.5p/s within 3 yrs) would raise £439,062.5 for a further 17,562.5m shares
Plus £150,000 worth of Power Metal shares subject to DD on Ditau.
So, in effect, the fund raise gives a headline total £358,000 plus sale proceeds of £150,000 or £508,000. BUT if the warrents are all exercised (and the "A"s are already "in the money"), the total raise would be £1,122,687.5 for a "dilution" of 79.937m shares. This would be an aprox 50% increase in issued shares.
There is also the possiblity of Directors/Managers taking additional loan notes.
In conclusion, the financing is likely to be more significant than I had fisrt thought and shoud avoid the need for a futher fund raise until next year (IMO)when we will hopefully be at much higher levels of SP.
Hope we continue to re-rate next week!
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