Atlantic Coal PLC SEDA advance and equity agreement (4203U)
December 02 2013 - 4:55AM
UK Regulatory
TIDMATC
RNS Number : 4203U
Atlantic Coal PLC
02 December 2013
Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining
Atlantic Coal plc ("Atlantic Coal" or the "Company")
SEDA advance and equity swap agreement, primarily to finance
export orders to China
Atlantic Coal, the AIM listed anthracite coal mining company
operating in Pennsylvania, USA, announces
That it has made a further draw down on its existing standby
equity distribution agreement and has entered into an equity swap
arrangement (SEDA). The combined effect of these two actions
provides the company with additional funds of GBP800,000 before
charges immediately and a further GBP650,000, adjusted as described
below, in the period to 31 December 2014. A significant proportion
of these funds will be used to increase stocks of anthracite at the
Stockton mine in order to satisfy bulk orders from China resulting
from sale agreements previously announced.
Under the terms of the SEDA with YA Global Master SPV Ltd
("Yorkville") details of which were announced on 25 July 2013,
Atlantic Coal has issued a further 689,491,203 new ordinary shares
of 0.07 pence each in the Company ("New Shares") to Yorkville for
an aggregate consideration of GBP1,450,000 before charges.
Application has been made to admit the New Shares to trading on AIM
which is anticipated to take place on or around 6 December
2013.
In addition the Company has entered into an equity swap
agreement with Yorkville in respect of 618,164,527of the shares
issued above ("the Swap Shares"). This enables the Company to
retain much of the economic interest in the Swap Shares over the
swap period. Under the swap arrangement Atlantic Coal pays
Yorkville GBP650,000 which is repaid in monthly instalments over
ten months commencing on 1 February 2014. The payments are
GBP65,000.00 per month adjusted as follows:
At each settlement date a market price for the shares is
established by taking the average of the lowest ten VWAPs in the
month.
The market price is compared to a benchmark price of 0.23 pence
per share. If the market price of the shares is less than the
benchmark price of the shares then 100% of the difference in value
on 10% of the swap shares is deducted from that month's payment. If
the market price is greater than the benchmark price then 50% of
the increased value of 10% of the Swap Shares is added to that
month's repayment. If the market price is greater than 0.4 pence
per share then an additional 25% of the increase in the value of
10% of the Swap Shares over 0.4 pence is also added to that month's
repayment.
Following the issue of the New Shares the Company's issued share
capital will be 4,662,538,505 ordinary shares with voting rights.
The Company does not hold any ordinary shares in treasury.
Therefore the total number of ordinary shares in the Company with
voting rights will be 4,662,538,505.
The above figure may be used by shareholders in the Company as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to
their interest in, the share capital of the Company under the
Financial Conduct Authority's Disclosure and Transparency
Rules.
Atlantic Coal's managing director, Steve Best, said "I am
delighted that Yorkville are demonstrating their confidence in the
Company's management and the steps that we are taking to develop
our business".
**ENDS**
For further information on the Company, visit:
www.atlanticcoal.com or contact:
Steve Best Atlantic Coal plc Tel: 0191 0386 06392
Nick Naylor Allenby Capital Limited Tel: 020 3328 5656
Alex Price Allenby Capital Limited Tel: 020 3328 5656
Elisabeth Cowell St Brides Media & Finance Tel: 020 7236 1177
Ltd
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCTTBMTMBAMBJJ
Atlantic Coal (LSE:ATC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Atlantic Coal (LSE:ATC)
Historical Stock Chart
From Jul 2023 to Jul 2024