RE: Total lies29 Jun 2026 13:49
From London Stock Exchange RNS 28/08/25:
To ensure that Cykel AI is well placed to execute its projects, the Company has agreed a £2.8m gross fundraise via a subscription for pre-paid warrants (the "Fundraise") by a group of strategic investors including DeFi Development Corp (the "Investors") into the Company.
In connection with the Fundraise, the Company has conditionally agreed to issue pre paid warrants over 2,333,333,333 ordinary shares of £0.01 in the capital of the Company ("Ordinary Share") with a term of five years to the Investors, with an exercise price of £0.0012 per Ordinary Share (the "Pre-Paid Warrants").
The Pre-Paid Warrants are only exercisable to the extent that the Investors (and any person that may be acing in concert with them) does not, as a result of any exercise in full or in part of the Pre-Paid Warrants, acquire an interest in more than 29.99% of the Company's issued Ordinary Share capital at any time.
The issue of the Pre-Paid Warrants is subject to, inter alia, approval by shareholders to authorise the directors of the Company to allot and issue the Ordinary Shares and to restucture the share capital of the Company so as to (a) split each existing ordinary share of £0.01 into one ordinary share of £0.001 and one deferred share of £0.009 and (b) consolidate 100 ordinary shares of £0.001 into one new ordinary share of £0.10 ("New Ordinary Share") (together being the "Share Restructure"). The Share Restructure will result in there being Pre-Paid Warrants over 23,333,333 New Ordinary Shares exercisable at £0.12 per share.
So if 5m have been cancelled this means there's maximum of 18,333,333 warrants to be exercised potentially. Agreed.
2.3B was correct before the 100:1 Consolidation. Which is still a huge potential dilution to current share capital of 5.17m...BUT investors holding them can't go above 29.99% without triggering a mandatory offer for the co?
AIMHO. GLA