Business
Placing and Debt Capitalisation
Placing and Debt Capitalisation.
About this update from Karelian Diamond Resources Plc
[{"type":"text","content":"\n \n \n 11 December 2013\n\n Placing to raise £700,000 and debt capitalisation \n\n * Placing of 46,666,666 new ordinary shares at 1.5 pence per share to raise £\n 700,000 before expenses\n \n * Debt capitalisation of £469,875 at 1.5 pence per share\n \n * Proceeds of the placing to be applied to accelerate ongoing programmes at\n its various diamond prospects in Finland\n \n______________________________________________________________________________\n\nKarelian Diamond Resources plc (\"Karelian\") (AIM: KDR, ESM: KDRI), the diamond\nexploration company focussed on Finland, announces that it has conditionally\nraised £700,000, before expenses, through a placing (\"the Placing\") of\n46,666,666 ordinary shares (\"Placing Shares\") of EUR0.01 in the capital of the\nCompany (\"Ordinary Shares\"). The Placing Shares have been placed at a price of\n1.5 pence per Placing Share (\"the Placing Price\"). In addition, Professor\nRichard Conroy, Chairman of the Company, has capitalised loans amounting to £4\n69,875 by subscribing for 3 1,325,000 Ordinary Shares of EUR0.01 in the capital\nof the Company at the Placing Price (together with the Placing Shares set out\nabove (\"New Shares\")).\n\nFollowing the admission of the New Shares, Professor Richard Conroy will hold 6\n8,356,701 Ordinary Shares in the Company, representing approximately 40. 16 per\ncent. of the Company's enlarged share capital and total voting rights.\n\nThe Placing Shares were placed with institutional and retail investors by XCAP\nSecurities Plc (\"XCAP\"). The Placing and Subscription are conditional, inter\nalia, on admission of the Placing and Subscription Shares to trading on AIM and\nthe Enterprise Securities Market operated by the Irish Stock Exchange Limited\n(\"ESM\"). The New Shares will rank pari passu with the existing issued ordinary\nshares of EUR 0.01 in the capital of the Company (\"Ordinary Shares\").\n\nThe Company intends to use the net proceeds of the Placing primarily accelerate\nthe Company's ongoing programmes at its various diamond prospects in Finland\nand for working capital generally.\n\nProfessor Richard Conroy's participation in the debt capitalisation is a\nrelated party transaction under the AIM Rules. The independent directors,\nhaving consulted with the Company's nominated adviser and ESM adviser, consider\nthe terms of the debt...