Element and ABO agree to amend the Convertible Note Facility

22.02.19 | Press releases

Oslo, Norway 22 February 2019 – ELEMENT ASA (Element, OSE:ELE) and European High Growth Opportunities Securitization Fund managed by Alpha Blue Ocean INC. (ABO) has agreed to amend tranche 3 under the convertible note facility, splitting the tranche into one MNOK 20 sub-tranche and several sub-tranches.

Element and ABO have agreed to amend the third tranche of the Convertible Note Facility splitting tranche 3 into a minimum of 3 sub-tranches and maximum 7 sub-tranches. The first sub-tranche will be in the amount of MNOK 20, the subsequent tranches will be in the amount of MNOK 5-15. The remaining sub-tranches may be called by Element or ABO subject to a 20 trading day cool down period. The total principal amount of the sub-tranches shall not in any event exceed NOK 50,000,000 which equals to the current amount of tranche 3. The parties have further agreed that upon settlement of the first new sub-tranche Element will pay to ABO the remaining part (1/3) of the commitment fee agreed under the Convertible Note Facility and in any event no later than 22 March 2019.

The amendments to tranche 3 require approval by the shareholders of Element. Notice of an extraordinary general meeting on 18 March 2019 (EGM) will be given on Monday 25 February 2019. The first sub-tranche will be drawn at the EGM.

"We are pleased to have reached a solution with ABO, which ensures improved funding for Element. Under the prevailing market conditions and taking in to account Element's investment and development plans, we view this agreement to be in the best interest of the company and our shareholders. We appreciate the flexibility shown by ABO to adjust to Elements current requirements, " says Cecilie Grue, CEO of Element ASA.

For further information, please contact:

Cecilie Grue
Chief Executive Officer
E-mail: cg@elementasa.com

Thomas Christensen
E-mail: tc@procorp.no

ABOUT ELEMENT | www.elementasa.com
Element is an innovative project investment company within the mineral sector, which continuously strives to create shareholder value at the lowest possible risk. The company has as strategy to identify undervalued projects, closing in on cash flow, where infrastructure and other basic work, if necessary, have in large, been completed. The company's special focus is linked to projects within new, and usually ground-breaking technology, within its niches.

This information is subject to disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.