Sale of shares to DADI Engineering to fund coal projects, investments
By Susanna Moon
Chicago, Sept. 6 - MetroCoal Ltd. said it secured a private placement of shares for A$24 million. The issue was placed with DADI Engineering Development (Group) Co. Ltd.
The company will sell 32 million shares to DADI at A$0.75 each in two tranches. The first placement for 3.2 million shares will be placed to DADI (Hong Kong) on an unconditional basis.
The sale price represents a 1.32% discount to the company's closing price of A$0.76 on Sept. 5.
In the second tranche, MetroCoal will sell 28.8 million shares for proceeds of A$21.6 million conditioned on MetroCoal shareholder and Chinese Government regulatory approval, according to a company press release.
Proceeds will be used to further develop MetroCoal's coal projects, in particular its Bundi project, and its investment in Tenement to Terminal Ltd. and other infrastructure solutions.
Settlement of the first tranche will occur on Sept. 13.
The company said it expects to get regulatory approvals by mid to late November and shareholder approval at a meeting on Nov. 24. The conditional placement is expected to settle by Nov. 30. Otherwise, the agreement will be terminated.
After the placement, DADI will hold 15% of the shares in MetroCoal and will nominate a representative to the MetroCoal board.
The coal-based energy company is based in East Brisbane, Australia.
| Issuer: | MetroCoal Ltd.
|
| Issue: | Shares
|
| Amount: | A$24 million
|
| Shares: | 32 million
|
| Price: | A$0.75
|
| Warrants: | No
|
| Investor: | DADI Engineering Development (Group) Co. Ltd.
|
| Pricing date: | Sept. 6
|
| Settlement dates: | Sept. 13 (for A$2.4 million), Nov. 30
|
| Stock symbol: | Australia: MTE
|
| Stock price: | A$0.76 at close Sept. 5
|
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