8th Oct 2019 12:10
(Alliance News) - Chaarat Gold Holdings Ltd on Tuesday waived the requirement that Labro Investments Ltd make a mandatory offer for the miner if it acquires up to another 4.0 million shares in the company by January 6, 2020.
Labro already holds 145.1 million shares, a 32.88% stake, and has warrants to subscribe for another 21.4 million shares plus convertible loan notes totalling USD1.0 million.
Chaarat Chair Martin Andersson has an indirect beneficial interest in the majority of Labro's shares and as such was not included in the waiver decision.
Under Chaarat's articles of association, it can require and shareholder with a stake above 20% to make a mandatory offers if they acquire any more shares.
Labro's requirement to make such an offer has been waived by the board before, again for up to 4.0 million shares, but the waiver period expired October 4. Under the previous waiver period, Labro acquired 3.7 million Chaarat shares, including 425,860 last week.
Should Labro acquire the maximum 4.0 million Chaarat shares by January 6 it will hold 149.1 million shares or a 33.8% stake. Including all possible warrant exercises, loan note conversions, and guarantee agreement shares, Labro's stake would be 172.6 million share or 39.1%.
Shares in Chaarat were up 2.9% at 35.00 pence each in London on Tuesday midday.
By Anna Farley; [email protected]
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