Terms allow for drawdowns via subscriptions for new ordinary shares
By Susanna Moon
Chicago, Aug. 20 - Oxus Gold plc said it closed a £3 million equity finance facility with Darwin Strategic Ltd., a majority owned subsidiary of Henderson Global Investors' Alphagen Volantis fund.
Under the term, the company may make drawdowns by issuing subscription notices to Darwin over a three-year period.
The share price under a subscription notice will be a 5% discount to the average of the three lowest daily volume-weighted average prices over the 15 trading days following a subscription notice.
The amount of each draw is limited to the lower of 25% of the company's issued share capital following completion of the related subscription or four times the average daily trading volume of the company's shares over the 15 trading days preceding the subscription notice.
Each subscription notice may not exceed £500,000, but with Darwin's consent, Oxus may increase the amount of a drawdown up to the maximum undrawn amount remaining under the agreement.
Darwin will also receive three-year warrants for 3 million shares, which are exercisable at 4.5p per share. The strike price is a 76.47% premium to the Aug. 17 closing share price of 2.55p.
Proceeds will be used to fund working capital requirements.
"We are very pleased that Darwin has agreed to provide an equity finance facility to the company," chairman Richard Shead said in a press release. "This funding arrangement provides Oxus Gold with a long-term flexible source of funding, which can be accessed at the company's discretion, and will complement the litigation funding arrangements which we put in place with Calunius in March 2012."
London-based Oxus is gold exploration company.
| Issuer: | Oxus Gold plc
|
| Issue: | Equity facility
|
| Amount: | £3 million
|
| Maturity: | 36 months
|
| Price: | 5% discount to the average of the three lowest daily volume-weighted average prices over the 15 trading days following a subscription notice
|
| Warrants: | For 3 million shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | 4.5p
|
| Investor: | Darwin Strategic Ltd.
|
| Pricing date: | Aug. 20
|
| Stock symbol: | London: OXS
|
| Stock price: | 2.55p at close Aug. 17
|
| Market capitalization: | £11.33 million
|
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