Share lending arrangement

29.10.19 | Press releases

The Chairman of Element ASA (the "Company"), Thomas Christensen, has through its wholly owned company Easy2Connect AS agreed to lend 400.000 existing tradable shares in the Company to Element ASA. 

The background for the share lending is the (i) private placement announced on 14 October 2019 ("Private Placement") in which the investors in the Private Placement has been allocated 463,333 new shares in the Company on a separate ISIN pending publication of a listing prospectus by the Company, and (ii) the Company's 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 (both of which are managed by Alpha Blue Ocean Inc.).

As announced in the notice for an extraordinary general meeting published on 15 May 2018, certain of the contractual penalties against the Company under the Convertible Note Facility cannot be triggered if the Company has procured that there are share lending agreements with Alpha Blue Ocean in place for at least 287,500 shares (adjusted for the share consolidation completed in April 2019) in the Company. The Company and Legacy Hill Resources Ltd has therefore previously lent 180,800 and 106,700 shares respectively to Alpha Blue Ocean (in total 287,500 shares). The Company has borrowed the mentioned 180,800 shares from certain shareholders in the Company, and certain of such
shareholders have requested redelivery of those shares in the Company.

In order to satisfy Element ASA’s obligation to redeliver the shares, and to deliver certain investors in the Private Placement with tradable shares, the Chairman of Element ASA has agreed to lend shares to Element ASA in order for the Company to meet is obligations to the above mentioned investors.

For further information, please contact:
Geir Johansen
+47 4771 0451