Ascent Resources plc has signed a £1.5 million strategic collaboration for 20% of the company with investor MBD Partners SA.
PREMIUM
MBD will directly subscribe for 42,857,143 new ordinary shares of 0.5p each, at 3.5 pence per new share, a 35% premium to the closing bid price of 2.6 pence on 2 October 2023. Each share has one attached warrant.
MBD will also propose a new non-executive director to Ascent’s board.
Ascent said that Ibrahim Diab, who wholly owns MBD, had an existing portfolio of natural resource investments and an “inventory of new business development opportunities thematically consistent with Ascent’s strategy”.
Under the agreement the companies will jointly review and evaluate business development opportunities for Ascent to “secure cash flows and material upside” in natural resources.
On completion of the subscription MBD, and Mr Diab, will hold 20.54% of Ascent’s enlarged share capital and be classified as a related party.
In May, Ascent cancelled a £1m subscription following delays with Beryl International (Pty) Ltd for Latin America and African metals opportunities.
SLOVENIA
Ascent is still awaiting the outcome of its arbitration claim against its Slovenian joint partner over its onshore Petišovci gas interests.
If the company wins the claim, the company will grant MBD new five year warrants equivalent to 150% of their subscription amount, at 5 pence per new warrant share.
In the event Ascent loses the claim, MBD will instead be given new five year warrants equivalent to 200% of the subscription amount exercisable at 3.5 pence per new warrant share.
“This is a highly advantaged subscription despite difficult markets, which serves both to fund the business at a premium whilst also de-risking our near term inflection point with the expected Slovenian arbitration result,” added Ascent chairman James Parsons.
“We are delighted to welcome MBD as a cornerstone shareholder and look forward to refining and delivering our strategy together.
“We believe this partnership will create both momentum and value for our shareholders.”