Financing Update

RNS Number : 8780E

Starvest PLC

11 May 2017

 

11 May 2017

Starvest Plc ("Starvest" or "the Company")

Financing Update

Starvest PLC (LON:SVE), the London Stock Exchange AIM listed specialist mining and resources investment business is pleased to advise that it has raised £170,000 through a placing and subscription in the company.

Highlights

·   Placing and Subscription of 8,500,000 new ordinary shares of 1.0 pence each ("Ordinary Shares") in the capital of Starvest at a subscription price of 2.0p per Ordinary Share, raising gross proceeds of £170,000 (the "Placing");

·    Placing and subscription undertaken at the closing bid price of the Company as at 10 May 2017;

·     Issue of 8,500,000 warrants to subscribe for 8,500,000 new Ordinary Shares in Starvest at an exercise price of 4.0p per warrant, within a 24 month exercise period;

·    Net proceeds of the Placing will be primarily used to expand the Company's specialist mining and resources investment portfolio.

Callum Baxter, Chairman and CEO, commented: 'We are pleased to announce this successful fundraising which will be used to expand our investment portfolio. Current market valuations remain very attractive and we are seeing many good investment opportunities. Positioning early in the market recovery phase is very important and the funds raised will allow us to take advantage of the modest valuations available now.

The board has participated in the fundraising along with existing and new shareholders. On behalf of the board I thank existing shareholders for their continued support, and I warmly welcome the new shareholders of Starvest PLC.'

Placing and Subscription Summary

Starvest has agreed a placing and subscription to raise £170,000 of gross proceeds through the issue of 8,500,000 Ordinary Shares in the Company at a price of 2.0p per share (the "Placing Shares").

Each Placing Share issued has an accompanying unlisted and non-transferable warrant to subscribe for an additional Starvest new Ordinary Share at a price of 4.0p at any time within 24 months of admission to trading of the Placing Shares (a total of 8,500,000 warrants). Should all of these warrants be exercised, a further £340,000 will be raised for the Company at a price of 4.0p.

Related party transaction

The board has participated in the Placing. Callum Baxter, Chairman and CEO, increases his holding in the Company by 720,000 shares and now holds a total of 3,235,872 shares representing 6.2% of the enlarged capital of the Company following admission of the placing shares. Gemma Cryan, Non-Executive Director, increases her holding in the Company by 500,000 shares and now holds a total of 575,000 shares representing 1.1% of the enlarged capital of the Company following admission of the placing shares.

The participation in the Placing of Callum Baxter and Gemma Cryan falls to be treated as a related party transaction under AIM Rule 13. The independent director, John Watkins, Finance Director, having consulted with Grant Thornton UK LLP (the Company's nominated adviser), confirms that he is satisfied that the terms of Callum Baxter and Gemma Cryan's participation in the Placing are fair and reasonable insofar as the Company's shareholders are concerned.

The 8,500,000 placing shares are expected to be admitted to trading on, or around, 17 May 2017. For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules ("DTRs"), the issued ordinary share capital of Starvest following the issue and allotment of the Placing Shares comprises 52,143,446 Ordinary Shares with voting rights attached (one vote per share). There are no shares held in treasury.  This total figure of 52,143,446 may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in Starvest under the DTRs.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Callum N Baxter

Chairman & Chief Executive

11 May 2017

Enquiries to:

Starvest PLC

Callum Baxter  Chairman/CEO  07922 255 933  [e-mail]

John Watkins  Finance Director  07768 512 404  [e-mail]

Grant Thornton UK LLP (Nomad)

Colin Aaronson or Harrison Clarke  02073 835 100

SI Capital Ltd (Appointed Broker)

Nick Emerson or Andy Thacker  01483 413 500

The following disclosure is made in accordance with Article 19 of the EU Market Abuse Regulation 596/2014.

1	Details of the person discharging managerial responsibilities / person closely associated
a)	Name	Callum Baxter
2	Reason for the notification
a)	Position/status	Chairman and CEO
b)	Initial notification /Amendment	Initial Notification
3	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Starvest Plc
b)	LEI
4	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the financial instrument, type of instrument	Ordinary Shares of 1.0p each
	Identification code	ISIN: GB0009619817
b)	Nature of the transaction	Participation in Fundraise
c)	Price(s) and volume(s)		Name Price(s) Volume(s) Callum Baxter 2p 720,000
d)	Aggregated information
	- Aggregated volume	720,000
	- Price	2 pence
e)	Date of the transaction	10 May 2017
f)	Place of the transaction	Outside a trading venue

1	Details of the person discharging managerial responsibilities / person closely associated
a)	Name	Gemma Cryan
2	Reason for the notification
a)	Position/status	Non-Executive Director
b)	Initial notification /Amendment	Initial Notification
3	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Starvest Plc
b)	LEI
4	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the financial instrument, type of instrument	Ordinary Shares of 1.0p each
	Identification code	ISIN: GB0009619817
b)	Nature of the transaction	Participation in Fundraise
c)	Price(s) and volume(s)		Name Price(s) Volume(s) Gemma Cryan 2p 500,000
d)	Aggregated information
	- Aggregated volume	500,000
	- Price	2 pence
e)	Date of the transaction	10 May 2017
f)	Place of the transaction	Outside a trading venue

 

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