RE: Lanstead7 Mar 2017 13:06
July 2013 RNS AMC
Placing Raises £5.2 m
Of the Subscription for 71,724,141 ordinary shares (the "Subscription Shares") for £5.2 million, Lanstead Capital L.P. ("Lanstead"), an institutional investor, has subscribed for 68,965,518 new ordinary shares (the "Lanstead Subscription Shares") for an aggregate consideration of £5.0 million. In addition, the Company has entered into an equity swap agreement ("Equity Swap Agreement") with Lanstead which allows the Company to retain much of the economic interest in the Lanstead Subscription Shares. The Equity Swap Agreement enables the Company to secure much of the potential upside arising from anticipated near term news flow.
The Equity Swap Agreement provides that the Company's economic interest will be determined and payable in 24 settlement tranches payable monthly as measured against a benchmark price of 9.67 p per share ("the Benchmark Price"). If the measured share price exceeds the Benchmark Price, for that month, the Company will receive more than 100 per cent of the monthly settlement due on a pro rata basis. There is no upper limit placed on the additional proceeds receivable by the Company as part of the monthly settlements. Should the measured share price be below the Benchmark Price, the Company will receive less than 100 per cent of the expected monthly settlement on a pro rata basis.
Of the aggregate proceeds of £5.0 million from the issue of the Lanstead Subscription Shares, the Company will use £1.0 million for working capital and £4.0 million for investment in the Equity Swap Agreement as described above. In no event would a decline in the Company's share price result in any increase in the number of ordinary shares received by Lanstead or any other advantage accruing to Lanstead.
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