Obtala Limited Issue of Equity and Warrants - Amendment (8029D)
May 02 2017 - 2:01AM
UK Regulatory
TIDMOBT
RNS Number : 8029D
Obtala Limited
02 May 2017
02 May 2017
Obtala Limited
("Obtala", the "Group" or the "Company")
(AIM: OBT)
Amendment of Issue of Equity and Warrants
Highlights
-- GBP4m equity and warrant raise entity amended from BVI
registered Wealth Rank Ltd to China registered timber trading
company Jiangsu Dolphin International Trading Co Ltd
-- All terms remain the same to those announced on 28(th) April
2017 except closing date now amended to 30(th) June 2017
-- The Company is also working to finalise a substantial wood
order with Jiangsu Dolphin International Trading Co Ltd
Obtala Limited (AIM: OBT), the African focused agricultural and
forestry company, is pleased to announce that it has today agreed
to amend the subscription entity announced on 28(th) April 2017
from Wealth Rank Limited ("WRL") to Jiangsu Dolphin International
Trading Co Ltd ("JDIT"). The terms to issue 20,000,000 new Ordinary
Shares of 1p each in the capital of the Company ("Ordinary Shares")
for a total cash subscription price of GBP4,000,000, equivalent to
a price of 20p per share, remain the same except the subscription
is expected to close on 30 June 2017, and is conditional on receipt
of the subscription monies and various administrative conditions
including no suspension of trading in Obtala ordinary shares in the
30 day trading period prior to close.
Application will be made for the 20,000,000 new Ordinary Shares,
which will on issue rank pari passu with the Company's existing
issued ordinary shares, to be admitted to trading on AIM. It is
expected that admission will become effective on or around 5 July
2017.
Following the issue, the enlarged issued share capital of the
Company with voting rights attached will consist of 297,637,768
Ordinary Shares of 1p each with one vote per share. There are
99,378 Ordinary Shares held in Treasury. Therefore the total number
of voting rights in the Company will be of 297,737,146. This figure
may be used by shareholders (and others with notification
requirements) as the denominator for the calculations by which they
will determine whether they are required to notify their interest,
or a change to their interest, in the Company under the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules or
otherwise.
The new Ordinary Shares represent approximately 7.2 per cent. of
Obtala's existing issued ordinary share capital and will on issue
represent approximately 6.7 per cent. of its enlarged issued
ordinary share capital, being JDIT's total holding of Obtala
ordinary shares.
Issue of warrants
In accordance with the terms of the subscription agreement, on
completion of the subscription the Company will issue warrants to
subscribe for up to 20,000,000 new Obtala ordinary shares to JDIT
at a price of 20 pence per share in accordance with the terms of a
warrant instrument under which warrants will exercisable
immediately upon issue until 1(st) November 2018. Any exercise of
Warrants shall be in multiples of 5,000,000 Warrants. The warrants
will not be transferable save to any member of the JDIT Group as
defined in the warrant instrument.
Miles Pelham, Chairman of Obtala, commented: "It gives me great
pleasure to announce that Jiangsu Dolphin International Trading Co
will be joining our shareholder register. Together we will expend
maximum energies to build a fruitful trading partnership selling
our sawn timber and also higher-value wood products for the
betterment of all stakeholders.
"JDIT's investment illustrates the clear value in our standing
timber as we move to monetize assets via a ramp up of production
throughout 2017 and into 2018 with our substantial sawmill in
Nampula coming online towards the end of this year. It is
encouraging that major investors have the confidence in the
management structures and processes we have put in place to unlock
and monetize value in Africa.
"JDIT is the third Asian based trading house to make a
substantial investment in the past 6 months with 2 trading houses
taking sizable stakes in our Argento Preference Share issue, as
announced on 1(st) Dec 2016. The desire from trading professionals
to gain access to underlying commodity assets bodes well for the
medium-term supply/demand outlook of precious wood species."
Obtala Limited
Miles Pelham - Chairman
Paul Dolan - CEO
www.obtala.com +44 (0)20 7099 1940
ZAI Corporate Finance Limited (Nomad)
Peter Trevelyan-Clark / John Treacy +44 (0)20 7060 2220
Brandon Hill Capital (Broker)
Jonathan Evans +44 (0)20 3463 5000
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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