Business
Placing to Raise £250,000
Placing to Raise £250,000.
About this update from Karelian Diamond Resources Plc
[{"type":"text","content":"\n \n17 May 2016\n\nKARELIAN DIAMOND RESOURCES\n\nSTRATEGIC FINANCING UPDATE\n\nPlacing to raise £250,000 (€317,000)\n\n• Placing of 31,250,000 new ordinary shares at 0.8 pence per share together with 31,250,000 warrants to raise £250,000 (€317,000) before expenses\n\n• Proceeds of the placing to be applied to fund the advancement of the Company’s principal diamond opportunities and in particular the recently acquired Lahtojoki Diamond Project and for working capital generally\n\nKarelian Diamond Resources plc (AIM: KDR, ESM: KDRI), the diamond exploration company focused on Finland, is pleased to announce that it has conditionally raised £250,000 (€317,000), prior to expenses, through a placing (the \"Placing\") of 31,250,000 ordinary shares of €0.01 in the capital of the Company (the \"Placing Shares\") and 31,250,000 warrants at an exercise price of 1.6 pence per warrant (the \"Warrants\"), together the \"Placing Units\", at a price of 0.8 pence per Placing Unit (the \"Placing Price\") being a premium of 2.56 per cent. to the closing mid-market-price on 16 May 2016 (being the last practicable date prior to the completion of the Placing).\n\nThe Placing is conditional, inter alia, on admission of the Placing Shares to trading on AIM and the Enterprise Securities Market operated by the Irish Stock Exchange Limited (\"ESM\"). The Placing Shares will rank pari passu with the existing issued ordinary shares of €0.01 in the capital of the Company (\"Ordinary Shares\").\n\nThe Warrants can be exercised at any time from admission of the Placing Shares to the second anniversary of the admission of the Placing Shares being 24 May 2018. The Warrants also contain a mandatory exercise clause if the closing price of the Ordinary Shares remains at 5p pence or higher for 10 or more consecutive business days.\n\nThe Company intends to use the proceeds of the Placing to fund the advancement of the Company’s principal diamond opportunities and in particular the Lahtojoki Diamond Project, the acquisition of which was announced on 19th April 2016 and for working capital generally.\n\nApplication has been made to AIM and ESM for the Placing Shares to be admitted to trading. It is expected that admission will become effective on 24 May 2016.\n\nFollowing the issue of the Placing Shares, and for the purposes of the Disclosure an...