9th Feb 2016 18:15
LONDON (Alliance News) - Metal Tiger PLC late Tuesday said it has agreed to issue 4.25 million shares to settle fees owed for marketing, communications and other professional services provided to the company, and told investors to keep an eye out for further news concerning its activities in the near future.
The natural resource investment company said the shares are to be issued at 1.0 pence each, representing an 11.1% premium against the mid-market price of Metal Tiger shares at the close on Monday.
Metal Tiger shares closed up 2.9% to 0.900 pence per share on Tuesday.
The shares will be issued on February 18 and represent just over 1% of the company's enlarged issued share capital, which will stand at a touch above 419.0 million shares.
"In today's environment most service providers are eager to receive cash for services, however, in this case we were asked to consider that payment be made in Metal Tiger shares in lieu of cash. This is a great endorsement for the company and its strategic plans and on this basis we were happy to undertake this modest additional issue of equity," said Chief Executive Paul Johnson.
Johnson took over at the helm of Metal Tiger on Monday after being shifted from his non-executive director role, replacing Cameron Parry, who, in turn, reverted to a non-executive director role.
Johnson was awarded options over 7.5 million Metal Tiger shares in return for taking the helm at the company, which can be exercised over three years at a price of 1.70 pence per share - a significant premium to the current share price.
Those 7.5 million shares, if exercised, would represent 1.75% of the company's enlarged issued share capital.
Both Johnson and Parry will offer themselves up for re-election at the 2016 annual general meeting. Neither of them are required to stand for re-election as shareholders voted in the last AGM to re-elect the pair on three-year terms, but both felt they should offer shareholders the opportunity to re-elect them following the changes.
"Metal Tiger is highly active at present and further announcements are likely to be made in the near future across a number of areas of the company's investment activities," Johnson said on Monday.
By Joshua Warner; [email protected]; @JoshAlliance
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