Business
Strategic Investment of up to US$46.75m
Strategic Investment of up to US$46.75m.
About this update from Emmerson Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9171R\n Emmerson PLC\n 10 November 2021\n \n \n \n \n Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining\n \n \n 10 November 2021\n \n \n \n \n \n Emmerson Plc Announces Strategic Investment of up to US$46.75 million1,2 for the Development\nof the Khemisset Potash Project\n \n \n General Meeting on 6 December 2021 to approve terms of Convertible Loan Notes\n \n \n \n \n \n Emmerson, the Moroccan focused potash development company, is pleased to announce it has secured a strategic investment of up to US$46.75 million1,2 from a group of investors to support the development of the Khemisset Potash Project (\"Khemisset\" or \"the Project\"). The primary investor is Global Sustainable Minerals Pte Ltd, a Singapore domiciled investment vehicle backed by a significant south-east Asian investor. Defined terms used in this Announcement are set out at the end of this Announcement.\n \n \n \n \n \n Highlights\n \n \n · \n \n Strategic investment of up to US$46.75m123 structured in two tranches comprising:\n \n \n \n o \n \n An immediate direct equity investment of US$6.75m at 6 pence per share1, an 8% premium to the 30-day VWAP, under the Company's existing authority to issue shares.\n \n \n \n o \n \n Subscription for up to US$40m of convertible loan notes, principal and interest with a conversion price of 8.2 pence per share13 a 48% premium to the 30-day VWAP, (\"Convertible Loan Notes\" or \"CLN\"). The Convertible Loan Notes are designed to contribute directly to the construction funding for Khemisset and are accessible by the Company once the overall funding package for the Project is in place. \n \n \n \n o \n \n Grant of 82,391,714 warrants pro rata to CLN subscribers, each warrant with a 12-month term and an exercise of 8.2 pence per share. Exercise of all warrants could secure additional c. US$9.3 million investment in the Company12.\n \n \n \n · \n \n On conversion of the CLN, the Strategic Investors, including GSM, will own up to a maximum of 29.9% of Emmerson Plc\n \n \n \n · \n \n The US$6.75m1 equity investment allows Emmerson to accelerate pre-construction activities at Khemisset: \n \n \n \n o \n \n Move into the execution phase on Project Financing discussions for debt to support project development with the aim to close in the middle of 2022\n \n \n \n o \n \n I...