Business
Conditional subscription by Greenstone Resource...
Conditional subscription by Greenstone Resource....
About this update from Serabi Gold Plc
[{"type":"text","content":"\n Conditional subscription by Greenstone Resources II LP (“Greenstone”) for US$12 million Convertible Loan Notes, Approval of a waiver of an obligation under Rule 9 of the City Code on Takeovers and Mergers and Notice of General MeetingTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE EU REGULATION 596/2014.22 January 2020Serabi Gold plc(“Serabi” or the “Company”)Conditional subscription by Greenstone Resources II LP (“Greenstone”) for US$12 million Convertible Loan NotesApproval of a waiver of an obligation under Rule 9 of the City Code on Takeovers and MergersNotice of General MeetingSerabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian focused gold exploration and development company, is pleased to announce that it has entered into arrangements with Greenstone, subject to certain terms and conditions, to raise gross proceeds of approximately US$12 million through the issue of convertible loan notes (the “Convertible Loan Notes”) in order to progress the development of Coringa, to settle the final acquisition payment for the Coringa project, to settle the Company’s outstanding loans owed to Sprott Resource Lending Partnership and for general working capital purposes. The capitalised terms in this announcement shall have the meaning ascribed to them in the definitions section contained at Appendix 2.Greenstone may, at any time when any of the Convertible Loan Notes are outstanding, convert such outstanding amount into Ordinary Shares (“Conversion Shares”) in the Company at a price of £0.76 per Ordinary Share following the issue of the Convertible Loan Notes. Subject to Greenstone not exercising its option to convert the amount outstanding into Conversion Shares during the 16 months following the issue of the Convertible Loan Notes, they will be redeemed by the Company 16 months following their issue.Greenstone, together with its Connected Persons and other persons acting in concert with Greenstone, is currently beneficially interested in 14,887,971 Ordinary Shares, representing approximately 25.27 per cent. of the Existing Ordinary Shares. Based on current exchange rates and the assumptions set out in Appendix 3 of this Announcement, the Directors expect that conversion of the Convertible Loan Notes would result in the issue to the Concert Party of approximately 12,145,749 Ordinary Shares (“E...