Endomines AB has placed EUR 3.4m loan with warrants to primarily Finnish institutional investors, including the Chairman of the Board of Endomines and the company’s CEO.
A loan facility amounting to EUR 3.4m have been placed with Finnish institutional investors. Among the investors are the Chairman of the Board and the CEO. The proceeds from the Loan will mainly be used for working capital need for the company and financing general corporate purposes of the Endomines group.
Greg Smith, CEO of Endomines, comments: “I am pleased to confirm the placing of our EUR 3.4 million loan facility, which allows us to continue the ramp-up of our Friday mine and mill. I want to thank the investors who participated in the loan note now issued. We have strong confidence in our prospects both in the US and Finland and are continuing to execute our growth strategy as planned.”
Ingmar Haga, Chairman of the Boards of Endomines, comments: “Our new CEO Greg Smith together with our team has been showing great operative progress over the recent months. Owning 29.9 percent of the share capital, he is the largest single owner of the Group, and his investment into this loan, further strengthens his financial commitment into Endomines. I am delighted to see such a strong alignment of interest of the CEO and the company’s shareholders.”
The Loan has a two-year tenor and a fixed annual interest rate of 12.0 percent. The company can choose to extend the loan with one further year at an interest rate increase of 0.25% p.a. The Loan is callable anytime at 100 percent of the nominal amount on the Company’s sole discretion. The terms and conditions of the Loan will be made available on Endomines’ webpage on or about 8 April 2020.
Each Warrant entitles to subscription of one new share in the Company, at a strike price of EUR 0.797 during the period from 30 June 2020 until and including 30 June 2023. The warrants are granted to some of the investors at a price amounting to 0.00797 euro per warrant (total 18 000 euro). The terms and conditions of the Warrants will be made available on Endomines’ webpage following registration of the Warrants by the Swedish Companies Registration Office (the “SCRO”). If all the warrants are excersised the dilution of existing shareholders share-capital and votes by 2 percent. No Warrants will be issued with respect to loan that have been subscribed for by members of the Board or management. In order to compensate the Chairman of the Board of Endomines and the company’s CEO that have subscribed for the loan, without the right to subscribe for Warrants, it is proposed that the 2020 Annual General Meeting resolves on an additional directed issue of 2.790.000 Warrants. The complete proposal will be presented in the notice to the Annual General Meeting. Provided that all Warrants (including any warrants that may be issued to the Chairman of the Board of Endomines and the company’s CEO following a resolution of the 2020 Annual General Meeting) are exercised, 5.040.000 new shares will be issued, corresponding to 4.4 percent of the total number of the currently outstanding shares in the Company. The dilution of existing shareholders share-capital and votes will be 4.3 percent.
UB Securities Ltd acts as the Lead Manager for the issuance of the Warrants.
Borenius Attorneys Ltd and Advokatfirman Cederquist KB act as legal counsel to Endomines in the issuance of the Loan with Warrants.
Endomines is a mining and exploration company with its primary focus on gold. The Company explores for gold along the Karelian Gold Line in Eastern Finland and develops mining operations in Idaho, USA. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.
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