Dutchess Opportunity Cayman Fund agrees to buy shares over three years
By Devika Patel
Knoxville, Tenn., July 24 - Oracle Coalfields plc said it arranged a £2 million three-year equity line facility with Dutchess Opportunity Cayman Fund Ltd. The financing was arranged by First Columbus LLC.
Dutchess has committed to buy up to £2 million of company shares over three years at a 5% discount to the ten consecutive trading days following the put notice.
The company will pay an initial arrangement fee of £20,000 to Dutchess in the form of 666,666 ordinary shares. Dutchess and First Columbus will also receive 666,666 warrants, exercisable at 4.8p, which is a 60% premium to the 3p closing share price on July 23 and is also a 77.8% premium to the mid-market closing price on July 23, the company said in a press release.
Proceeds will be used for working capital as Oracle progresses to full-scale mine development on its property in Pakistan.
Oracle is a Cambridgeshire, England, coal company.
| Issuer: | Oracle Coalfields plc
|
| Issue: | Equity line facility
|
| Amount: | £2 million
|
| Tenor: | Three years
|
| Price: | 5% discount
|
| Warrants: | No
|
| Investor: | Dutchess Opportunity Cayman Fund Ltd.
|
| Fees: | £20,000
|
| Settlement date: | July 24
|
| Stock symbol: | London: ORCP
|
| Stock price: | 3p at close July 23
|
| Market capitalization: | £6.43 million
|
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