Mercer Resources PLC Issue of Equity & Convertible Loan Notes (0973I)

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RNS Number : 0973I

Mercer Resources PLC

27 May 2014

Mercer Resources Plc (AIM: MCR)

Issue of Equity & Convertible Loan Notes

The Board of Mercer Resources Plc ("Mercer" or the "Company") is pleased to announce that it has raised GBP193,500 (before expenses) from two professional investors by way of a combination of subscription for new ordinary shares of 0.1 pence each ("Subscription Shares") in the share capital of the Company and issue of convertible loan notes.

The capital raised will provide Mercer with the financial flexibility to advance a number of strategic investment discussions and the implementation of its investing policy. The board is currently reviewing a number of possible investment opportunities and will update shareholders of progress in due course.

The Company will issue 10,333,333 Subscription Shares at 1p per share raising GBP103,333 and GBP90,167 loan notes convertible into new ordinary shares at 1p ("Loan Notes").

The Loan Notes, which do not carry a coupon, are convertible at any time until 19 May 2017, at which time, if not converted, the Loan Notes will become repayable in a single instalment. On full conversion the note holders would receive 9,016,700 ordinary shares of 0.1 pence each.

The Subscription Shares will rank pari passu with the existing ordinary shares of 0.1 pence each in the Company (the "Ordinary Shares"). Application has been made for admission of the Subscription Shares to trading on AIM and it is expected that dealings in the Subscription Shares will commence on or around 2 June 2014.

Following the issue of the Subscription Shares, there will be 89,479,136 Ordinary Shares in issue ("Enlarged Share Capital"). This number may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company.

Inversiones Bergamo Ltd has subscribed for 9,300,000 of the Subscription Shares, which will represent 10.4 per cent. of the Enlarged Share Capital. Inversiones Bergamo Ltd has also subscribed for GBP57,000 of the Loan Notes.

Enquiries:

 
Trevor Wells                  Mercer Resources plc           020 3301 9331 
Nominated Adviser             Cairn Financial Advisers 
 James Caithie/Avi Robinson    LLP                           020 7148 7900 
Broker                        Peterhouse Corporate Finance 
 Jon Levinson/Lucy Williams    Limited                       020 7469 0936

This information is provided by RNS

The company news service from the London Stock Exchange

END

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