Refinancing, business strategic update and update on resumption of trading

African Battery Metals plc (LON:ABM) the AIM listed African focused exploration company developing projects in strategic battery metals today announces a refinancing and business strategic update.

HIGHLIGHTS

  • Conditional placing and subscription (the “Refinancing”) raising £1,000,000 at a price of 0.5 pence per new ordinary share, resulting in the issue of 200,000,000 new ordinary shares of 0.1 pence each, (the “Refinancing Shares”);
  • The Refinancing of the Company is subject to the passing of all resolutions at a General Meeting to be held by the Company, (the “General Meeting”) (further details of which are set out below), the resumption to trading in the Company securities on AIM and the admission of to trading on AIM of the Refinancing Shares, Creditor Shares, Fee Shares and Director Shares (“Admission”);
  • Each Refinancing Share has an attaching warrant to subscribe for a new ordinary share of 0.1 pence each in the Company, (“New Ordinary Shares”), at a price of 1 pence per share with a two-year life to expiry (the “Refinancing Warrants”) from the date of Admission;
  • The refinancing exercise will allow payment of all material Company creditors through a mixture of cash and/or shares and enable the Company to be essentially debt free with a robust cash position sufficient for at least 12 months of operation when considering current business costs and operational plans;
  • Subject to the passing of resolutions at the General Meeting and the conditions detailed below, Roger Murphy, CEO and Matt Wood, Executive Director to step down from the board with Andrew Bell to be appointed Executive Chairman and Paul Johnson as Executive Director;
  • Andrew Bell and Paul Johnson (or their connected parties) have committed to subscribe for £50,000 each in the Refinancing on the terms as outlined above. Additionally, Red Rock Resources, a company of which Andrew Bell is a director, has committed to subscribe for £100,000 in the Refinancing; and
  • A full strategic and operational review will be undertaken to ensure corporate costs are minimised, to target forward exploration resources in a prioritised manner and to consider potential new opportunities to complement and diversify the Company’s interests.

Roger Murphy, Chief Executive Officer of African Battery Metals commented:

“Following the Company’s announcement on 11 December 2018, I am pleased to report the board have been able to negotiate and conclude a business restructuring and refinancing package that enables the Company, subject to shareholder approval at General Meeting, to return to trading on the market.
I would like to thank all the parties involved including my fellow board members and our advisers, for their support during what has been an intensive six weeks of work and discussions to reach this point today.

Of paramount importance is that the Company has now been financially stabilised and that it utilises this fresh start to grow and return value to our shareholders. In this regard I thank shareholders for their support and trust that the business can now flourish and become a strong natural resource exploration and development company. I wish the new management team the very best in this endeavour.”

Please click here to download the full RNS statement (PDF)

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28 January 2019

 
 
 

African Battery Metals Plc
201 Temple Chambers
3-7 Temple Avenue
London EC4Y 0DT
United Kingdom

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