Business
Broadcourt Investments subscribes to new shares
Broadcourt Investments subscribes to new shares.
About this update from Capital Metals Plc
[{"type":"text","content":"\n \nRNS Number : 2403Y Equatorial Palm Oil plc 20 February 2013 \n \n\n20 February 2013\nEQUATORIAL PALM OIL plc\n(\"EPO\" or the \"Company\")\nBroadcourt Investments subscribes to new shares in EPO\n \nEquatorial Palm Oil is pleased to announce that Broadcourt Investments Ltd (\"Broadcourt\"), a company associated with EPO's largest shareholder BioPalm Energy Limited (\"BioPalm Energy\"), has today subscribed for 6,927,658 ordinary shares of 1 pence each in the Company (\"Ordinary Shares\") at a price of 12 pence per share (the \"Subscription\") for an aggregate consideration of £831,319.\n \nThe Subscription proceeds received by EPO will be used to provide a loan of $1.2m to EPO's joint venture (\"JV\") company, Liberian Palm Developments Limited (\"LPD\")(the \"Loan\"). The funds will provide short-term financing to support LPD's ongoing development of its oil palm projects in Liberia, West Africa, in advance of the anticipated funding from the African Export-Import Bank (\"AFB\") being raised for the Company. AFB was appointed as a corporate advisory partner to LPD as announced on 13 February 2013.The Loan will be provided to LPD on a short-term basis with interest payable at a fixed rate of 8 per cent per annum. The Loan is repayable on funding being received from AFB or 12 months from 19 February 2013, whichever is earlier, and is secured on the assets of LPD. \n \nFollowing the Subscription, BioPalm Energy and Broadcourt will be interested in 40,260,991 Ordinary Shares representing 29.77 per cent of the Company's issued share capital post the Subscription. The Subscription price of 12p per share represents a premium of 18.58 per cent over EPO's closing share price on 19 February 2013.\n \nThe new Ordinary Shares have been issued and allotted utilising the Company's existing share allotment authorities. Application will be made as soon as practicable for the admission of the new shares to trading on AIM and admission is expected to take place on 26 February 2013.\n \nBackground to and reasons for the Subscription\nUnder the terms of the joint venture agreement between EPO and BioPalm Energy, entered into in December 2010, EPO and BioPalm Energy contributed, in aggregate, $30 million into LPD, which is now largely invested.\n \nLPD recently appointed AFB for the purpose of securing...