Business
Disposal of Warrants and Interest in Shares
Disposal of Warrants and Interest in Shares.
About this update from Chill Brands Group Plc
[{"type":"text","content":"\n \nRNS Number : 2555B Highlands Natural Resources PLC 15 June 2016 \n\n15 June 2016\nHighlands Natural Resources plc (\"Highlands\" or \"the Company\")\nDisposal of Warrants and Interest in Shares\n \nHighlands, the London listed natural resources company, is pleased to announce that it has been notified by Diversion Technologies LLC ('Diversion') that Diversion has today entered into arrangements to sell its entire holding of 30 million warrants in Highlands to an institutional investor (the \"Institutional Investor\"). The 30 million warrants were granted to Diversion by Highlands as part of the consideration to acquire a 75% interest in the pending patents for DT Ultravert, which has the potential to transform and significantly reduce the costs associated with unconventional exploration and production via re-fracking. These warrants are exercisable into ordinary shares in Highlands at 25 pence per share so, if the Institutional Investor takes up its options to acquire the entire holding (as described below) and exercises the warrants, Highlands will receive new funds of £7.5 million. This is a potentially significant event in the development of Highlands. Whilst Diversion did not have the financial resources to exercise the warrants, the structure of the arrangements with the Institutional Investor specifically contemplate the warrants being exercised.\n \nSummary of the terms of the disposal\n \nDiversion has today entered into arrangements to sell its entire holding of 30 million warrants in Highlands to the Institutional Investor. The arrangements are in three parts.\n \nInitially, the Institutional Investor has the right, within the next two days, to acquire 10 million warrants ('Stage 1 Warrants') at a price of 5 pence per warrant, payable to Diversion.\n \nIn addition, Diversion has granted the Institutional Investor an option to acquire its remaining warrants as follows:\n \n1. Subject to exercising the Stage 1 Warrants within the next four weeks, the Institutional Investor is entitled to acquire a further 10 million warrants ('Stage 2 Warrants') at a price equal to 10 pence per warrant plus 50 per cent. of any amount by which the Highlands share price on the day prior to exercise exceeds 55 pence. For example, if the Highlands share ...