Rainbow Rare Earths Limited Full Conversion of Convertible Loan (6416B)
June 10 2019 - 1:00AM
UK Regulatory
TIDMRBW
RNS Number : 6416B
Rainbow Rare Earths Limited
10 June 2019
FOR IMMEDIATE RELEASE
10 June 2019
Rainbow Rare Earths Ltd ('Rainbow' or 'the Company') (LSE:
RBW)
Full Conversion of Convertible Loan
Rainbow announces that it has received an exercise notice from
The Lind Partners LLC ('Lind') requesting full conversion of the
outstanding US$900,000 convertible loan facility announced on 28
January 2019.
Under the terms of the convertible loan, taking into account
collateral shares already issued by Rainbow, Lind is entitled to be
issued with a further 26,290,251 ordinary shares of no par value in
the Company ('Ordinary Shares') which equates to an effective
conversion price of 2.69p for each new Ordinary Share issued.
Under the Prospectus Rules, there is a limit on the number of
new shares that a company can admit to trading (and in effect
issue) in any 12 month period, without incurring the obligation to
publish a prospectus.
For all of the 26,290,251 new Ordinary Shares requested by Lind
to be admitted to trading Rainbow will be required to publish a
prospectus.
Therefore, Rainbow has agreed with Lind to allot a total of
8,446,360 shares immediately and the balance of 17,843,891 Ordinary
Shares pending publication of a prospectus, which Rainbow expects
it will publish in July 2019. Lind has reserved the right to revoke
its exercise notice in relation to the allotment and issue of the
additional 17,843,891 Ordinary Shares
The 8,446,360 new Ordinary Shares now issued to Lind rank pari
passu with the Company's existing issued Ordinary Shares and
application has been made for these Ordinary Shares to be admitted
to the Main Market of the London Stock Exchange. Dealings are
expected to commence on 14 June 2019.
Following the issue of the 8,446,360 new Ordinary Shares to
Lind, the Company's enlarged issued share capital will be
216,339,000 Ordinary Shares. The Company has no treasury shares.
This figure of 216,339,000 Ordinary Shares 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 in their interest in, the share capital of
the Company under the FCA's Disclosure and Transparency Rules.
**ENDS**
For further information, please contact:
Rainbow Rare Earths Ltd Martin Eales Tel: +44 (0) 20 3910
4550
St Brides Partners Ltd Priit Piip Tel: +44 (0) 20 7236
1177
---------------- ---------------------
Arden Partners plc Paul Shackleton Tel: +44 (0) 20 7614
Benjamin Cryer 5900
---------------- ---------------------
Notes to Editors:
Rainbow's focus is the Gakara Project in Burundi, one of the
highest-grade (47%-67% Total Rare Earth Oxide) rare earths projects
globally and the only African producer.
The Company began production of rare earth concentrates in Q4
2017 and has a ten-year distribution and offtake agreement with
multinational thyssenkrupp Materials Trading secured for the sale
of at least 5,000tpa of concentrate produced.
The Gakara basket is weighted heavily towards the magnet rare
earths, including neodymium and praseodymium, which are driving
demand and account for 70% of annual global REE sales due to their
use in vital components in motors, generators, wind turbines, and
electric vehicles.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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