Emmerson: Oversubscribed fundraise

12th July 2019 | Emmerson PLC

Emmerson Plc (“Emmerson” or the “Company”), the Moroccan focused potash development company, is pleased to announce that it has raised £2.25 million (before expenses) through an oversubscribed placing of 60,000,000 new ordinary shares of no-par value each in the share capital of the Company (“Placing Shares”) at a price of 3.75 pence per share (the “Issue Price”) (collectively the “Fundraising”).

The placing was led by joint brokers Shard Capital Partners LLC (“Shard”) and Optiva Securities Limited (“Optiva”). The funds raised will primarily support the Company as it continues to rapidly develop the world class Khemisset Potash Project (“Khemisset” or the “Project”) through the delivery of key work streams.

 

Details of the Fundraising

Use of proceeds

It is intended that the proceeds of the Fundraising will principally be used for the continuation of development of the Project post the delivery of the Feasibility Study, including progressing debt financing and strategic partner discussions, any additional technical work required post the Feasibility Study including further drilling, metallurgical testing and engineering studies and to cover general working capital expenses for the Company.

Admission and Total Voting Rights

The Company has raised £2.25 million, before expenses, through the issue of the Placing Shares with certain existing Shareholders and new investors.

Accordingly, an application has been made for the Placing Shares to be admitted to the Official List of the UK Listing Authority by way of a Standard Listing (“Admission”) and it is expected that Admission will become effective and dealing in the Placing Shares will commence on or around the 16th of July 2019. The Placing Shares will rank pari passu with the existing ordinary shares of the Company.

Following Admission, the enlarged issued share capital of the Company will comprise of 686,132,385 ordinary shares of no-par value each. No ordinary shares are held in Treasury. The total number of voting rights in the Company is therefore 686,132,385.

The above figure of 686,132,385 ordinary shares may be used by shareholders of 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 Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

Emmerson PLC investor relations video

Five Minute Pitch TV recently filmed Hayden Locke, CEO of Emmerson. He provides an investors overview of business in the video below – the interview focuses on Emmerson’s operations, the geopolitical situation in Morocco, the global potash market and the companies forward strategy.

 

 

Hayden Locke, commentary on the fundraise

“The support that we have received in this fundraise, for which demand significantly exceeded our minimum targeted figure, is very encouraging and demonstrates a strong belief from our investors in the potential of Emmerson and the Khemisset Project.

“These funds enable us to continue our strategy of rapidly advancing the Project and our discussions with various potential strategic partners, without the pressure of impending short term capital requirements.

“The second half of the year will see significant project related news flow including metallurgical test work results, an updated Mineral Resource Estimate, various partner discussions in country, continuing offtake discussions and the delivery of the full Feasibility Study.

“This work builds upon the findings of the Scoping Study for Khemisset, which highlighted its sector leading capital costs and EBITDA margins, delivering post tax cash flow of nearly US$190 million per annum, and a post-tax NPV10 of US$1.14 billion using independent industry analyst price forecast.

The Emmerson team looks forward to continuing to update shareholders with details of our progress.”

Emmerson PLC Investor Relations

Hayden Locke, CEO of Emmerson PLC in an investor relations video for Five Minute Pitch TV

Click here to view Emmerson Investors Videos