20th Nov 2015 09:21
LONDON (Alliance News) - Tricor PLC Friday said it has drawn down GBP23,000 under a working capital facility provided by Ellwood International Ltd, and has issued Ellwood with 6.05 million shares at a price of 0.38 pence per share, and 24.2 million warrants to subscribe for new shares exercisable of 0.5 pence.
Shares in Tricor were down 25% at 0.450 pence Friday morning.
Following this issue of shares Ellwood has an interest in 54.0 million shares, or a 29.35% interest in the company.
Under UK takeover code any company that has an interest in 30% or more of another company is required to make a general offer to all remaining shareholders to acquire their shares. Given Ellwood's current shareholding in the company, it would be unable to buy any more share or exercise all of its warrants without incurring this obligation, which in turn means that Tricor is unable to drawn down more than GBP6,000 from the working capital it has in place with Ellwood.
It has drawn GBP176,960 of the GBP200,000 facility to date.
As a result of this Tricor is exploring other options to finance its working capital requirements, and is in talks with potential investors.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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