Kavango Resources plc’s £6 million fundraise will be via direct subscription by current shareholder Purebond Ltd, potentially increasing its holding to more than 50%.
TERMS
The subscription in two stages will be for the conditional issue of 140 million new ordinary shares of £0.001 each at 1p per share, and 460m new ordinary shares for the same price.
Stage II is subject to the approval by the Financial Conduct Authority of a prospectus and independent shareholders.
Purebond may also participate in all future fundraisings on a pro rata basis to its shareholding.
The investor may also maintain its percentage interest in Kavango following the exercise of any warrants.
SHAREHOLDERS
Purebond currently holds 85m shares in the company, equal to 12.05%.
In addition, Solai Pension Schemes has one million shares, representing less than 1% of Kavango.
On the issue of the Stage I, Purebond and Solai will hold 226m ordinary shares representing 26.7% of Kavango.
Successful completion of the subscription will result in Purebond and Solai holding 686m, or 52.5% of the company’s issued share capital.
Purebond, a subsidiary of Solai Holdings Ltd, is owned by the Kansagra family from Kenya.
USES
Proceeds will contribute to Kavango’s general working capital, further exploration work and finance possible acquisitions.