6th Jan 2016 10:17
LONDON (Alliance News) - Vast Resources PLC Wednesday said it has issued additional shares to its directors and senior executives following the subscription agreement announced on Monday.
The company entered into a subscription agreement with Crede CG III Ltd under which it will raise GBP5.0 million through the issue of four tranches of 156.3 million shares at 0.8 pence per share to Crede. Each of the issues will occur at 90-day intervals, with each tranche to raise GBP1.25 million apiece.
Crede Capital, which runs the fund, is a US-based family office which invests in emerging European companies.
The subscription on the second, third and fourth tranches to be issued to Crede is dependent on an investment being made by Vast's directors and senior executives, which was confirmed on Wednesday.
A further 62.5 million new shares have been issued at the same price to directors and senior management to raise the GBP500,000 needed to satisfy the second, third and fourth tranches to be issued to Crede. In addition, Vast said it has also issued warrants over another 62.5 million shares to those directors and management which are exercisable at 1.04 pence per share before early 2021.
Importantly, shareholders still have to approve the deals at a general meeting which is expected to be held shortly.
The additional 62.5 million shares issued that was announced Wednesday were issued directly to directors and also to some companies associated with directors.
Sapi River Investments Ltd, which is associated with Vast Chairman William Battershall, snapped up 20.8 million of the additional subscription shares and now holds a 11.59% stake in the company.
WES Capital (Pte) Ltd, associated with Chief Financial Officer Pierre Joubert, purchased 20.8 million shares to up its stake to 1.11%.
Fermain Ltd, associated with Chief Executive Roy Pitchford, subscribed to 5.2 million shares and now holds a stake just over 1% in the company.
Finance Director and Company Secretary Roy Tucker increased his stake after subscribing to 5.2 million shares and now holds a 1.68% stake in Vast, whilst Non-Executive Graham Briggs bought his first stake in the company through 4.2 million shares, giving him a 0.22% stake. "Other senior employees" subscribed to the remaining 6.3 million shares.
Following the issue of those additional 62.5 million shares, Vast has a share capital of 1.87 billion shares. The company's share capital has increased by almost 60% since before the original subscription agreement was announced Monday, when it had around 1.18 billion shares in issue.
Vast shares were trading down 2.6% to 0.999p on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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