AIM-listed Vast Resources plc has entered into a subscription agreement for new ordinary shares. BY TATIRA ZWINOIRA
Vast Resources has operations in both Zimbabwe and Romania.
Under the agreement, they will subscribe for new ordinary shares of 0,1 pence (p) ($0,15) each in the company at a price of 0,8p ($1,17) per share, in order to raise half a million managers’ subscription shares and associated warrants.
An ordinary share represents equity ownership in a company and entitles the owner to a vote in matters put before shareholders in proportion to their percentage of ownership in the company.
In a statement on Tuesday, Vast Resources said the deal was entered into to try and raise the half million managers’ subscription shares and associated warrants together, called additional financing.
“The additional financing is provided at the same subscription price and on the same warrant terms as Tranche 1 of the financing announced on January 4, 2016 with Crede Capital,” Vast Resources said.
“Pursuant to the additional financing, 62 500 000 new ordinary shares were issued by the company on January 5, 2016 at an issue price of 0,8 pence ($1,17) per new ordinary share being the closing bid price per ordinary share on the trading day immediately prior to the investment date of the financing.”
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Following the issue of managers’ subscription shares, the holdings of the managers participating in the additional financing will be Sapi River Investments Limited (associated with Will Battershill), Fermain Limited (associated with Roy Pitchford), Roy Tucker, Graham Briggs, Wes Capital (Pte) Limited (associated with Pierre Joubert) and other senior employees.
This comes on the backdrop of a binding subscription agreement entered into between Vast and Crede Capital which provides for an investment of £5 million ($7 339 072) in Vast through the issue of ordinary shares to Crede Capital in four separate tranches, occurring at 90-day intervals, with each tranche being equal to £1,25 million in quantum.
Vast Resources also announced that it had issued 62 500 000 warrants to acquire ordinary shares in the company exercisable at 1,04 pence ($1,53) each at any time until January 3, 2021 to the managers.
The agreement entered into by Vast Resources plc will mean the ordinary shareholders will now be entitled to receive dividends if any are available after dividends on preferred shares are paid.
An application has been made to the London Stock Exchange plc for the 62 500 000 managers’ subscription shares to be admitted to trading on the AIM market with admission expected to occur on January 11, 2016.
After this agreement, the issued ordinary share capital of Vast will now consist of 1 877 345 366 ordinary shares.
