Business
Signature of £10,000,000 Institutional Placing
Signature of £10,000,000 Institutional Placing.
About this update from Nativo Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7194F Echo Energy PLC 19 May 2017 \n\n19th May 2017\nEcho Energy plc\n(\"ECHO\" or the \"Company\")\nSignature of £10,000,000 Institutional Placing at Nil Discount\n \nFurther to the announcements on 18 April 2017 and 5 May 2017, Echo Energy is delighted to announce that Pegasus A. Fund Ltd. SAC (\"Pegasus\"), a Bahamas based institutional investor have today agreed, subject to shareholder approval at shareholder meeting on 22 May 2017, to subscribe together with investors it introduces, for 2,469,135,802 new ordinary shares (\"Subscription Shares\") at a price of GBP 0.004050 per share to raise gross proceeds of approximately GBP 10,000,000 (the \"Placing\"), being the mid-market price at the close of business on 18 May 2017 (being prior to the Company's announced share consolidation). In addition, the Company has agreed to issue 1,234,567,901 five-year warrants to Pegasus, each with an exercise price of GBP 0.006075 per warrant (150% of the issue price) on completion of the Placing.\nThe arrangement with Pegasus will complete after 15 business days at which point the Company will arrange for admission of the Subscription Shares to trading on AIM, further details of which will be released presently. Pegasus will have the right to procure other institutional placees to subscribe for some of the Subscription Shares. The proceeds of the Placing shall not be less than £10,000,000. As part of these arrangements, the Company is paying a 10% commission.\nAs announced on 15 May 2017, the Company has agreed to issue warrants in favour of Greenberry plc (\"Greenberry\") as part of the institutional funding described in that announcement. The Company and Greenberry have now agreed that the exercise price of those warrants will be GBP 0.006075.\nThis adjustment to the price of the warrants issued Greenberry is a related party transaction for the purposes of the AIM rules. The independent directors (as described in the announcement of 15 May 2017) having consulted with the Company's Nominated Adviser, ZAI Corporate Finance Limited, consider the terms of the transaction fair and reasonable in so far shareholders are concerned.\n \nJames Parsons, Chairman, commented:\n\"We are delighted to confirm the last of an initial phase of institutional investment in Echo which now positions the Company for its planned ...