Business
SAREUM HOLDINGS PLC : Issue of Equity
SAREUM HOLDINGS PLC : Issue of Equity.
About this update from Sareum Holdings Plc
[{"type":"text","content":"\n SAREUM HOLDINGS PLC : Issue of Equity (AIM: SAR) 13 June 2014 SAREUM HOLDINGS PLC (\"Sareum\" or the \"Company\")Issue of EquitySareum Holdings Plc (AIM: SAR) announces a conditional funding of £550,000 by way of a Placing and an Equity Swap Agreement with YA Global Master SPV, Ltd. (\"YAGM\") at 0.50 pence per share. Dr Tim Mitchell, Sareum's CEO, commented: \"Our three core research programmes continue to progress by means of the collaborations we announced in 2013. We are very pleased to benefit from further working capital and programme funding through our relationship with YAGM, first announced in September 2012. \"Placing:YAGM have subscribed for a total of 110,000,000 new ordinary shares (the \"Subscription Shares\") in the Company at a price of 0.50p per share (\"Placing Price\") for a gross consideration of £550,000. Equity Swap Agreement:The Company and YAGM have entered into an equity swap agreement (\"the Equity Swap Agreement\") covering 78,750,000 ordinary shares, pursuant to which the Company will pay YAGM £200,000. In consideration for this payment, the Company will receive twelve monthly payments of £16,667, amounting to £200,000 in aggregate, between the date of the Equity Swap Agreement and 30 June 2015. The monthly payments can be adjusted either:up, if the average of the lowest 10 day VWAP during the relevant one month period is greater than 0.55p, being a 10% premium to the Placing Price; ordown, if the average of the lowest 10 day VWAP during the relevant one month period is lower than or equal to 0.55p. This would result in the Company receiving less funds from YAGM in any relevant one month period.Thus the funds received by the Company from the Equity Swap Agreement will be dependent on the future price performance of the Company's ordinary shares.YAGM may elect to terminate the Equity Swap Agreement and accelerate the payments due under it in certain circumstances.YAGM has agreed that it and its affiliates will refrain from holding any net short position in respect of the Company's ordinary shares until the expiry or, if earlier, termination of the Equity Swap Agreement.It is expected that admission will occur and that trading in the Subscription Shares will commence on AIM at 8.00 am on 20 June 2014. These Subscription Shares will rank pari passu in all respects with the Company's existing issu...