Obtala Limited Issue of Equity and Warrants (6745A)
28 March 2017 - 5:00PM
UK Regulatory
TIDMOBT
RNS Number : 6745A
Obtala Limited
28 March 2017
28 Mar 2017
Obtala Limited
("Obtala", the "Group" or the "Company")
(AIM: OBT)
Issue of Equity and Warrants
Highlights
-- GBP4m raise by way of new share issue at 20p to Hong Kong HNW
-- GBP4m 18 months warrants to be issued with strike price of 20p
-- Raising represents a 13.4% premium to yesterday's closing price
Obtala Limited (AIM: OBT), the African focused agricultural and
forestry company, is pleased to announce that it has entered into a
conditional subscription agreement dated 27 March 2017 with Wealth
Rank Limited ("WRL") to issue 20,000,000 new Ordinary Shares of 1p
each in the capital of the Company ("Ordinary Shares") for a total
cash subscription price of GBP4,000,000, equivalent to a price of
20p per share, a 13.4% premium to yesterday's closing price. The
subscription is expected to close on 2 May 2017 and is conditional
on receipt of the subscription monies and various administrative
conditions including no suspension of trading in Obtala ordinary
shares in the 30 day trading period prior to close.
Application will be made for the 20,000,000 new Ordinary Shares,
which will on issue rank pari passu with the Company's existing
issued ordinary shares, to be admitted to trading on AIM. It is
expected that admission will become effective on or around 3 May
2017.
Following the issue, the enlarged issued share capital of the
Company with voting rights attached will consist of 297,637,768
Ordinary Shares of 1p each with one vote per share. There are
99,378 Ordinary Shares held in Treasury. Therefore the total number
of voting rights in the Company will be 297,538,390. This figure
may be used by shareholders (and others with notification
requirements) as the denominator for the calculations by which they
will determine whether they are required to notify their interest,
or a change to their interest, in the Company under the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules or
otherwise.
The new Ordinary Shares represent approximately 7.2 per cent. of
Obtala's existing issued ordinary share capital and will on issue
represent approximately 6.7 per cent. of its enlarged issued
ordinary share capital, being Wealth Rank Limited's total holding
of Obtala ordinary shares.
Issue of warrants
In accordance with the terms of the subscription agreement, on
completion of the subscription the Company will issue warrants to
subscribe for up to 20,000,000 new Obtala ordinary shares to WRL at
a price of 20 pence per share in accordance with the terms of a
warrant instrument under which warrants will exercisable
immediately upon issue until 27(th) September 2018. Any exercise of
Warrants shall be in multiples of 5,000,000 Warrants. The warrants
will not be transferable save to any member of the WRL Group as
defined in the warrant instrument.
Miles Pelham, Chairman of Obtala, commented: "I am delighted to
have agreed terms for this subscription with BVI incorporated WRL,
beneficially owned by a HNW investor based in Hong Kong, which
underlines the attractiveness assigned to Obtala's substantial
assets as we monetize them in a sustainable manner.
"As noted in yesterday's quarterly update, the Board see
substantial opportunity in and around our existing business lines
and the subscription proceeds will be applied towards further
expansion of the Company's forestry and agriculture operations, via
organic growth or acquisitive in nature".
Obtala Limited
Miles Pelham - Chairman
Paul Dolan - CEO
www.obtala.com +44 (0)20 7099 1940
ZAI Corporate Finance Limited (Nomad)
Peter Trevelyan-Clark / John Treacy +44 (0)20 7060 2220
Brandon Hill Capital (Broker)
Jonathan Evans +44 (0)20 3463 5000
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IOEOKODQOBKDBNB
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