5th Apr 2016 07:26
LONDON (Alliance News) - Vast Resources PLC on Tuesday said it has decided against giving consent to the second tranche of its financing agreement with Crede Capital, signed in January.
Under the subscription agreement between the two, Crede was to provide four tranches of GBP1.25 million at 90-day intervals in exchange for shares and warrants in Vast.
However, Vast said on Tuesday it has decided not to consent to the second tranche of this financing agreement as it would result in Crede owning more than 25% of Vast's share capital.
Since the financing agreement with Crede was made, Vast said its share price has fallen substantially, meaning the warrants granted to Crede have been highly-dilutive to Vast shareholders.
Vast shares were up 33% in early trade to 0.325 pence, one of the best performers in the AIM All-Share, having hit an intraday high of 0.40p. The shares to Crede were due to have been issued at 0.24p per share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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