Business
Fundraise of US$1m
Fundraise of US$1m.
About this update from Kore Potash Plc
[{"type":"text","content":"\n\n8 August 2023\n \nKORE POTASH PLC\n(\"Kore Potash\" or \"the Company\")\nFundraise of US$1 million\n \nKore Potash plc, the potash development company with 97% ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located in the Republic of Congo, is pleased to announce the successful completion of a share subscription, which has raised US$ 0.8 million through the proposed issue of 124,384,000 new ordinary shares of US$0.001 each in the company (\"Subscription Shares\") to certain eligible existing shareholders at a price of 0.5 pence per share (the \"Subscription Price\") and the issue of convertible loans by the Company with an aggregate value of US$ 0.2 million (\"Convertible Loans\") (collectively the \"Fundraise\").\n \nThe gross proceeds of the Fundraise of US$1 million will be used to further advance work that is expected to lead to the delivery of an Engineering, Procurement and Construction contract for the Kola Potash Project, as announced earlier by the Company today 8 August 2023.\n \nThe Company's two largest shareholders, the Oman Investment Authority (\"OIA\") and Sociedad Quimica y Minera (\"SQM\") will be offered the opportunity to subscribe for new ordinary shares at the Subscription Price as is required under their Investment Agreements with Kore Potash. OIA and SQM have up to 21 business days to inform the Company if they intend to subscribe and any such participation will be deemed a related party transaction for the purposes of AIM Rule 13 and ASX Listing Rule 10.11.3, and will accordingly require relevant shareholder approvals.\n \nAny participation by OIA and SQM would be in addition to funds raised via the Fundraise and announced here.\n \nConvertible Loans\nDavid Hathorn, the Chairman of Kore Potash, has participated in the Fundraise, by way of two Convertible Loans of US$0.1 million each, via two separate trusts further details of which are set out below. A General Meeting will be held in due course to seek approval of the conversion of the Convertible Loans from both trusts which are associated with David Hathorn, a related party of the Company, following which (if approved) 15,548,000 new ordinary shares of US$0.001 each will be issued to each trust, resulting in 31,096,000 new ordinary shares being issued in aggregate (\"Conver...