TIDMSEFA
RNS Number : 2678N
Shefa Gems Ltd
19 May 2020
B"H
19 May 2020
Shefa Gems Ltd.
("Shefa Gems" or the "Company")
Conversion of GBP1.25 Million of Loans into Equity
Shefa Gems (LSE: SEFA), a company focused on advanced
exploration and development of multi-gemstone projects in Northern
Israel, is pleased to announce that it reached agreement with a
number of the holders of convertible loans to the Company ("Loan
Holders") to convert their loans amounting to GBP1,117,765 at a
substantial premium to the current share price. In addition, on 25
May 2020 David Ben David and Gershon Fraenkel, the remaining loan
note holders, intend to convert their convertible loan notes into
ordinary shares of the Company. Mr. Ben David intends to convert
his convertible loan notes over a total amount of GBP79,480 into
1,589,590 ordinary shares of NIS0.1 in the capital of the Company.
Mr. Fraenkel intends to convert his convertible loan notes over a
total amount of GBP52,934 into 1,058,671 ordinary shares of NIS0.1
in the capital of the Company. David Ben David is the Chief
Financial Officer of the Company and Gershon Fraenkel is a Director
of the Company. Both are prohibited from dealing currently, as the
Company is currently in a closed period until the publication of
its annual accounts, which is expected to be on Friday, 22 May
2020. Following this conversion, the total amount to be converted
will be GBP1,250,179.
Under the terms of the convertible loans, the Loan Holders will
be issued with 25,447,303 ordinary shares of NIS0.1 each in the
capital of the Company, amounting to 14.47 per cent. of the
Company's issued share capital.
Application will be made for these Ordinary Shares to be
admitted to the Main Market of the London Stock Exchange with
dealings expected to commence on 30 June 2020.
Following the issue of the 25,447,303 new Ordinary Shares to the
Loan Holders, the Company's enlarged issued share capital will be
201,284,238 Ordinary Shares. This figure of 201,284,238 Ordinary
Shares may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change in their
interest in, the share capital of the Company under the FCA's
Disclosure and Transparency Rules.
On 30 June 2020, the Company will grant the Loan Holders one
unlisted warrant for every share received on conversion,
exercisable for a period of 24 months from the date of the
conversion, at a price of 10 pence per warrant. In the event that
the Company's share price before 30 June 2022 does not at any time
reach 10 pence per share, the Loan Holders will receive additional
shares at that date in such an amount as to make the total number
of shares issued to the Loan Holders have a value, based on the
market price at that time, of double their individual
investments.
Following conversion of the loans, the Company will not have any
convertible loans outstanding.
Director Shareholding
Gershon Fraenkel is a Director of the Company and is currently
interested in 60,000 ordinary shares (representing 0.03% of the
current issued share capital). Following the conversion of his
convertible loan notes, he will be interested in 1,118,671 ordinary
shares (representing 0.56% of the enlarged share capital).
Vered Toledo, CEO of Shefa Gems, said: "We are incredibly
grateful to our loan holders for their confidence in our Company
and our mission. The conversion of the loans into ordinary shares
during the current global crisis is the most profound demonstration
of confidence by our shareholders. Following the award of the
Certificate of Discovery in March 2020, the path for mine
development in Zones 1 and 2 of the Kishon Mid-Reach area is
opened. The award of the Certificate in combination with the
continued support of our shareholders and Loan Holders takes us a
significant step closer, with God's help, to establishing the first
and only precious gemstone mine in Northern Israel."
- Ends -
Enquiries
Shefa Gems Ltd
Michael Rosenberg, OBE - Chairman
www.shefagems.com +44 20 7938 4026
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VSA Capital Limited - Financial
Adviser
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Andrew Raca +44 20 3005 5000
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SI Capital Limited - Broker
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+44 20 3871 4038 / +44
Nick Emerson and Jon Levinson 1483 413500
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Notes to Editors
About Shefa Gems Ltd
Shefa Gems Ltd (LSE: SEFA) is an explorer and developer of
precious stones deposits operating in Northern Israel. Exploration
activity is managed by professionally skilled and technically
competent personnel and is accompanied by an international team of
geological experts with decades of proven experience in their
fields. It has two flagship projects, Mount Carmel and the Kishon
Reach.
With its international geological consultant team, Shefa Gems
has established a "Source to Sink" geological model and the
presence of a Target Mineral Assemblage of gemstones ("TMA Suite")
in both primary volcanic sources and in secondary alluvial deposits
lying within the Kishon catchment, on Mount Carmel and in the
Zevulun and Yizre'el valleys and their margins. The TMA suite
comprises Precious Stones (Diamond, rare natural moissanite,
sapphire, ruby, Carmel Sapphire(TM), garnet, hibonite, spinel,
ilmenite) and heavy minerals including zircon and rutile.
All exploration activities are conducted under international
standards and the internationally recognised SAMREC 2016 Code. Its
three permits, granted to it by the Commissioner of Mines at the
Ministry of Energy, Natural Resources Administration, Israel,
extend over an area of approximately 488,366 Dunams (48,836
hectares) that includes the Kishon River, the volcanic bodies on
Mount Carmel, the Zevulun and Yizre'el valleys and their
margins.
Alongside its exploration activities, the Company is building on
the launch of the "Heaven on Earth" jewellery collection and
developing the Company's "Mine to Market" strategy to promote
unique jewellery collections utilising Shefa Gems' suite of
precious gemstones.
The Company upholds environmental values and protects the nature
in the areas where it operates, cooperating fully with all
authorities.
The exclusive "Heaven on Earth" collection is now available to
view online on the website of the designer Yossi Harari at:
https://www.yossiharari.com/collections/heaven-on-earth-1
For further information please visit the website at
www.shefagems.com
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END
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