8th Jul 2019 14:46
(Alliance News) - Chaarat Gold Holdings Ltd on Monday said its board has waived the requirement for Labro Investments Ltd to make an offer once it completes the acquisition of up to 4.0 million Chaarat shares.
Labro, an entity closely associated with Executive Chair Martin Andersson, is already in possession of 139.8 million Chaarat shares, or a 34.8% stake. In addition, Labro also holds 21.4 million warrants to subscribe for shares and convertible loan notes for USD1.0 million.
Under Chaarat's articles of association, it has the right to compel any shareholder with more than a 20% stake to make a mandatory offer if they acquire any further interest.
This requirement has previously been waived for Labro - including most recently for the acquisition of up to 5.0 million shares in the market. That waiver expired June 21 with Labro having acquired 4.4 million shares under it.
If, under the new waiver, Labro buys its entire 4.0 million share maximum, it will hold 143.8 million shares, equivalent to a 35.8% stake. In combination with all its warrants and loan notes, Labro would hold 168.1 million shares or a 41.8% stake in the firm's enlarged share capital.
Shares in mining company Chaarat were up 0.4% at 28.20 pence on Monday afternoon.
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