Mercom Capital confirms that discussions with Calvet International Ltd regarding the proposals set out in the announcement of 27 October 2016 are ongoing.
These Proposals have been modified by Calvet in the following principal respects:
- cash fundraising of £5.0m at 20p per share from new investors ("New Investors") combined with the issuance of Warrants to the New Investors on a 1:2 basis exercisable at 80p per share, expiring 180 days after issue;
- issue to Mercom shareholders (on the register on the date of the General Meeting to be convened to approve the Proposals) of bonus warrants on a 1:4 basis exercisable at 80p per share, expiring 180 days after issue; and
- the Directors to sell all their shares (together with shares issued on exercise of their warrants, each of which has an exercise price of 5p per share) at 20p per share to the New Investors, with the Directors returning 2p per share to the Company.
"There can be no certainty that the Proposals, as revised, will be finalised and supported by proposed new investors," Mercom said.
"In addition, the Proposals are subject to approval of Mercom shareholders in general meeting and so there can be no assurance that the Proposals will be approved. Further announcements will be made in due course."
At 9:40am: (LON:MCC) Mercom Capital Plc share price was +3p at 18p