Draw-down of minimum MNOK 5 and maximum 15 under the convertible note facility

03.07.19 | Press releases

Reference is made to Element ASA's (the "Company") zero coupon NOK 500 million convertible note facility with attached warrants (the "Convertible Note Facility") with European High Growth Opportunities Securitization Fund, represented by European High Growth Opportunities Securitization Fund Manco SA (the "Investor"). The Convertible Note Facility was approved by the Company's general meeting on 6 June 2018, and the general meeting approved amended terms of the Convertible Note Facility on 18 March 2019.

The Company has today submitted a request to the Investor to draw-down the second sub-tranche ("Sub-Tranche") under the third tranche of the Convertible Note Facility in the amount of minimum NOK 5,000,000 and maximum NOK 15,000,000. The investor will decide the principal amount of the Sub-Tranche. The draw-down implies that the Company will issue minimum 50 new notes and maximum 150 new notes with par value of NOK 100,000 and minimum 322,580 warrants and maximum 967,741 warrants to the Investor. The new notes and warrants will be issued in the VPS without undue delay after the Company's receipt of the proceeds following the draw-down.

The notes shall be converted into shares in the Company, at the latest at date falling 12 months following registration of the resolution related to the Sub-Tranche of notes in the Norwegian Register of Business, at a conversion price corresponding to 100 % of the lowest daily volume weighted average price of the Company's shares during the 10 consecutive trading days period prior to the trading day the Company receives a conversion notice in respect of the notes.

The warrants may be exercised into shares in the Company at any time in the period following issuance of the warrants in the VPS until 6 June 2022, at an exercise price of NOK 3.1 per share.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

For further information, please contact:

Geir Johansen
Chief Executive Officer
Telephone: +47 477 10 451
E-mail: gj@elementasa.com

Thomas Christensen Chairman of the Board of Directors
Telephone: +47 922 55 444
E-mail: tc@procorp.no

About Element ASA
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.