2nd Nov 2015 11:26
LONDON (Alliance News) - Stellar Diamonds PLC Monday said it has proposed a capital reorganisation whereby every 50 existing shares of 1 pence each will be consolidated into one consolidated share of 50p each.
Each consolidated share will then be sub-divided into one new ordinary share of 1p and one new deferred share of 49p.
The diamond development company has also entered into a conditional convertible loan agreement with Deutsche Balaton AG to raise USD1.7 million with a conversion price of 0.56p per existing share or 28.18p per new share, and has granted Deutsche Balaton warrants to subscribe for shares at an aggregate exercise price of USD1.7 million.
In addition, Stellar Diamonds has entered into a conditional agreement to raise GBP497,452 by way of a subscription through the issue of 7.6 million new shares in aggregate at 6.55p.
As part of the subscription, Deutsche Balaton will subscribe for 6.9 million shares at the subscription price. Following completion, Deutsche Balaton will be interested in 29% of Stellar's issued share capital.
The weighted average price of the new convertible loan note conversion price, new warrant exercise price and subscription price is approximately 0.31p per existing share, for a total investment of USD4 million should the new warrant be exercised in full.
The net proceeds of the convertible loan note and subscription of GBP1.3 million will be used to provide ongoing working capital as the group seeks to complete the Tongo mining licence application in Sierra Leone and resume the trial mining of the diamondiferous Baoulé kimberlite pipe in the Republic of Guinea.
Shares in Stellar were trading up 6.4% at 0.399p Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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