La Mancha will become a cornerstone shareholder owning approximately 35.4% of the then enlarged share capital of Altus
Altus shareholders approve La Mancha strategic investment and consolidation. (Credit: Adam Radosavljevic from Pixabay)
Altus Strategies Plc (AIM: ALS & TSX-V: ALTS), the Africa focused project and royalty generator, announces that at its general meeting (“General Meeting”) held on 18 February 2020, the shareholders of the Company (“Shareholders”) approved all resolutions to effect the proposed strategic investment (“La Mancha Strategic Investment”) by La Mancha Holding S.à r.l. (“La Mancha”) in the Company and a five to one consolidation of the Company’s share capital (“Share Consolidation”). The issue of 124,229,389 new ordinary shares (“Ordinary Shares”) in the Company at a price of C$0.09 per Ordinary Share, to La Mancha is conditional upon Admission. Completion of the La Mancha Strategic Investment (“Completion”) will only remain conditional upon the receipt by the Company of C$11,180,645 (“Subscription Price”) (approximately £6.5 million), Admission (as defined below) and receipt of regulatory approval of the TSX Venture Exchange (“TSX-V”) . Admission and Completion are expected to take place on 21 February 2020.
Highlights:
- Conditional strategic investment by La Mancha of approximately C$11.2 million (approximately £6.5 million / approximately US$8.4 million) approved by Altus shareholders
- Transformational deal to accelerate the Company’s project and royalty strategies in Africa
- On Completion:
- La Mancha will become a cornerstone shareholder owning approximately 35.4% of the then enlarged share capital of Altus
- La Mancha will have the ability to appoint two representatives to the Altus’ board of directors
- Following Completion the Altus treasury of cash and listed equities will be approximately C$18.2M / £10.5M
- Five into one share consolidation to be undertaken effective as at the close of trading on 21 February 2020
Steven Poulton, Chief Executive of Altus, commented:
“We are delighted that our shareholders have overwhelmingly approved the strategic investment by La Mancha, a pre-eminent Africa-focused mining investment group with a notable track record in deal selection and value creation. The directors believe that this transaction will be transformative for Altus, providing the capital and expertise to fast track our project and royalty generation activities, as well as unlocking new external growth opportunities. The directors are of the view that the deal also represents a strong industry endorsement of the Altus team, portfolio and business model. We thank our shareholders for their continued support and look forward to keeping them advised of our progress.”
La Mancha Strategic Investment
Upon the receipt of the subscription price and final TSX-V approval, the Company will issue to La Mancha 124,229,389 new Ordinary Shares in the Company at a price of C$0.09 per Ordinary Share, for aggregate gross proceeds of C$11,180,645 (approximately £6.5m / US$8.4m). On Admission, La Mancha will own approximately 35.4 per cent. of the enlarged share capital of the Company. The Company will make a further announcement in relation to Completion and the subsequent Share Consolidation.
Upon the receipt of the subscription price and final TSX-V regulatory approvals, the Company will issue to La Mancha 124,229,389 new Ordinary Shares in the Company at a price of C$0.09 per Ordinary Share, for aggregate gross proceeds of C$11,180,645 (approximately £6.5m / US$8.4m). On Admission, La Mancha will own approximately 35.4 per cent. of the enlarged share capital of the Company. The Company will make a further announcement in relation to Completion and the subsequent Share Consolidation.
Source: Company Press Release