7 Sep 2020 14:01
7 September 2020
EQUATORIAL PALM OIL plc
("EPO" or the "Company")
Response to share price movement
The Board of Equatorial Palm Oil plc (AIM:PAL), notes the movement in the Company's share price over recent days, and the significant volume of trades today.
On 20 August 2020 the Company announced that it had conditionally raised gross proceeds of £400,000 via a placing ("Placing") of 100 million ordinary shares ("Placing Shares") at 0.4 pence per share.
The Placing is conditional, inter alia, on the passing of resolutions to approve a capital reorganisation and the Placing by shareholders at a general meeting, to be held at 10.00 a.m. on 8 September 2020. If the resolutions are passed, the capital reorganisation becomes effective at 6.00 p.m. on 8 September 2020, and admission of the Placing Shares to trading on AIM is expected to occur on or about 8.00 a.m. on 10 September 2020.
A circular, containing further details with respect to the Placing and the notice of General Meeting has been posted to shareholders and is available on the Company's website ( www.epoil.co.uk).
The Company intends to use the proceeds of the Placing to explore corporate opportunities and for working capital generally.
Nearly 3 months has elapsed since 10 June 2020 when the Company became an AIM Rule 15 cash shell. As such, it is required to make an acquisition, or acquisitions, which constitutes a reverse takeover under AIM Rule 14 (including seeking re-admission under the AIM Rules for Companies) within six months of that date. Alternatively, within such time period, the Company can seek to become an investing company pursuant to AIM Rule 8, which requires, inter alia, the raising of at least £6 million and publication of an admission document. In the event that the Company does not complete a reverse takeover under AIM Rule 14 within such six month period or seek re-admission to trading on AIM as an investing company pursuant to AIM Rule 8 (either being, a "Re-admission Transaction"), the Company's common shares would be suspended from trading pursuant to AIM Rule 40. Thereafter, if a Re-admission Transaction has not been completed within a further six-month period, admission to trading on AIM of the Company's ordinary shares would be cancelled.
For further information please visit https://www.epoil.co.uk/ or contact:
Equatorial Palm Oil plc Michael Frayne (Executive Chairman) | +44 (0) 20 7268 4874 |
SPARK Advisory Partners Limited (Nominated Adviser) Neil Baldwin |
+44 (203) 368 3550 |
Mirabaud Securities Limited (Joint Broker) Peter Krens |
+44 (0) 20 7484 3510 |
Brandon Hill Capital Limited (Joint Broker) Jonathan Evans/Oliver Stansfield |
+44 (0) 20 3463 5000 |