Last checked at 29 May 2020 07:00
29 May 2020
Pathfinder Minerals Plc
("Pathfinder" or the "Company")
Further Update re Issue of Equity
Further to the Company's announcement of 28 May 2020, the below provides further context to the Company's decision to vary the price of the Fundraise, which consisted of a placing of 35,384,615 Ordinary Shares (the "Placing") and a subscription for 3,076,923 Ordinary Shares, from 1 pence per Ordinary Share (as announced on 11 May 2020) to 0.65 pence per Ordinary Share, following discussion with its broker, Novum Securities Limited ("Novum").
Novum advised that it was its opinion that the Company's announcement on 27 May 2020 would have a material adverse impact on the ability to complete the Placing and accordingly Novum had to review its position with respect to the Placing on behalf of the underlying placees. It is noted that the Company's share price opened considerably lower and closed approximately 16 per cent. lower on 27 May 2020 at 0.65 pence as compared to the closing price on 26 May 2020 of 0.775 pence.
Under the placing agreement governing the Placing entered into by the Company and Novum, Novum has the right to terminate the placing agreement until such point as the Ordinary Shares issued pursuant to the Placing are admitted to trading to AIM, subject to a number of conditions, which are at its sole discretion. It is noted that this is a normal course provision of placing agreements.
The Company was keen to seek a practical solution with Novum and its underlying placees in order to facilitate the Placing completing and for the Company to receive the net proceeds of the Placing in order to continue advancing its business strategy. As such, the decision was taken by the Company to vary the price downwards to reflect the closing price on 27 May 2020, rather than enter into what would likely have been a costly and time consuming legal process to attempt to enforce its rights under the existing placing agreement.
As noted in the Company's announcement yesterday, the same quantum of gross proceeds of £250,000 is still to be raised via the Fundraise, which is expected to be received by the Company on 3 June 2020. Please refer to the Company's announcement yesterday for further information on the revised terms of the Fundraise.
Capitalised terms not otherwise defined shall have the same meaning as defined in the 28 May 2020 announcement.
Enquiries:
Pathfinder Minerals Plc
Dennis Edmonds, Chief Executive Officer
Tel. +44 (0)20 3440 7775
Strand Hanson Limited (Nominated & Financial Adviser)
James Spinney / Ritchie Balmer / Jack Botros
Tel. +44 (0)20 7409 3494
Vigo Communications (Public Relations)
Ben Simons / Simon Woods
Tel. +44 (0)20 7390 0234
Email. pathfinderminerals@vigocomms.com
Novum Securities Limited (Corporate Broker)
Colin Rowbury / Jon Belliss
Tel. +44 (0)20 7399 9400
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").