4 Mar 2016 12:21
4 March 2016
StratMin Global Resources Plc
("StratMin" or the "Company")
£300,000 private placement to fund corporate development
StratMin Global Resources Plc (AIM: STGR), London's only listed graphite production and exploration company, announces completion of a private placement raising gross proceeds of £300,000 via the placement of 12,000,000 new ordinary shares of 0.01 pence each (the "Ordinary Shares") (the "Placing Shares") at a placing price of 2.5 pence per Ordinary Share (the "Placing Price") (the "Placing").
The net proceeds of the Placing will be used, inter alia, to complete due diligence on confidential corporate opportunities related to graphite based energy storage applications that the Company has been working on. The budget required to progress these opportunities is over and above the expansion funding provided for the Company's Loharano operation pursuant to the transaction with Bass Metals Ltd (as first announced on 2 September 2015), and will allow the Company to complete due diligence, finalise terms and documentation and provide working capital.
As a result of confidential corporate opportunities currently under investigation, the Company is deemed to be in a close period. Once the Company is next in an open period, it is the commitment of the StratMin executive management and certain members of the Concert Party (further details on which are set out in the table below) to convert outstanding directors fees and other arrears amounting to approximately £300,000 into new Ordinary Shares at the higher of the Placing Price and the share price of the Company at the time of the conversion announcement.
Issue of Warrants
In connection with the Placing, the Company will issue 600,000 broker warrants with an exercise price of 2.5 pence, which are exercisable at any time up to and including 4 March 2018 (the "Broker Warrants"). Following the issue of the Broker Warrants, the Company will have 7,019,541 warrants outstanding and 17,379,040 options outstanding.
Admission to Trading and Total Voting Rights
Application has been made to the London Stock Exchange for admission of the Placing Shares to trading on AIM ("Admission") and it is expected that Admission will take place and that trading will commence on AIM on or around 10 March 2016.
Following Admission, the Company will have 163,149,391 Ordinary Shares in issue with each share carrying the right to one vote. The Company has no Ordinary Shares held in treasury. The total number of voting rights in the Company following Admission will therefore be 163,149,391. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
Concert Party
The shareholdings of the individuals set out below, who were deemed by the Panel on Takeovers and Mergers at the time of the Company's reverse takeover of Graphmada Equity Pte Ltd in January 2013 to be acting in concert (the "Concert Party"), before and after the abovementioned Placing are set out below:
Name | Number of Ordinary Shares held | % of Ordinary Shares outstanding prior to the issue of the Placing Shares | Number of Placing Shares subscribed for in the Placing | Total shareholding following the Placing | % of Ordinary Shares outstanding following the issue of the Placing Shares | |
Caralapati Raghirah Premraj(1) | 16,813,319 | 11.12% | - | 16,813,319 | 10.31% | |
Marthinus (Marius) Johannes Hendrik Pienaar | 12,150,000 | 8.04% | - | 12,150,000 | 7.45% | |
Mrs Kesava Padmavathi | 8,100,000 | 5.36% | - | 8,100,000 | 4.96% | |
Mrs Caryl Melissa Jane Pienaar | 6,500,000 | 4.30% | - | 6,500,000 | 3.98% | |
Ghanshyam Champaklal | 5,025,000 | 3.32% | - | 5,025,000 | 3.08% | |
Srirekam Kesava Purushotham | 2,700,000 | 1.79% | - | 2,700,000 | 1.65% | |
Jeffrey Royce Marvin | 916,667 | 0.61% | - | 916,667 | 0.56% | |
Total | 52,204,986 | 34.54% | - | 52,204,986 | 32.00% | |
(1) Includes the shares issued to Non-Executive Director, David Premraj, on 31 March 2014
Following completion of the Placing (in which no individual member of the Concert Party has participated), the Concert Party will hold interests in Ordinary Shares carrying, in aggregate, 32.00% of the voting rights of the Company.
As noted above, it is the intention that when the Company is deemed to be out of the close period, certain members of the Concert Party will convert outstanding debts of up to £160,000 (in addition to those debts to be converted by executive management) at the higher of the Placing Price and the share price of the Company at the time of the conversion announcement, subject to such issue of new Ordinary Shares to the Concert Party not resulting in the aggregate interests of the Concert Party exceeding 33.00% of the Company's then enlarged share capital.
Appointment of joint-broker
Optiva Securities managed the placement. Optiva Securities has been appointed joint-broker to the Company effective immediately.
Brett Boynton, CEO, commented:
"We are very encouraged to welcome a number of new investors to the register and to be able to further progress a significant corporate opportunity for the Company with the completion of this placement.
"The executive team recently committed to taking equity in lieu of cash for all their accumulated salaries and fees to date and I am pleased we will be able to make good on that commitment alongside this new investment. It is also encouraging to have the Concert Party commit to participate in that equity undertaking with senior management and we thank them for their unwavering support."
For further information please visit www.stratminglobal.com or contact:
StratMin Global Resources Plc Brett Boynton, CEO | +44 (0) 20 3691 6160 |
Strand Hanson (Nominated & Financial Adviser) Rory Murphy / James Spinney / Ritchie Balmer | +44 (0) 20 7409 3494 |
Optiva Securities (Joint Broker) Christian Dennis | +44(0)203 137 1903 |
Beaufort Securities (Joint Broker) Jon Bellis | +44 (0) 20 7382 8300 |