REG - Emmerson PLC - Additional Issuance of Shares and Rights

EmmersonAnnouncement

12/12/2024 07:00

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RNS Number : 8392P  Emmerson PLC  12 December 2024

Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining

12 December 2024

Emmerson PLC

("Emmerson" or the "Company")

Additional Issuance of Shares and Rights and Update on Notice of Dispute with
Moroccan Government

Emmerson Plc ("Emmerson" or the "Company"), the Moroccan focused potash
development company, today announces the additional issue of shares and rights
to the Board and Management of the Company and also provides an update on its
position with respect to its assets and investments in Morocco.

Additional Issuance of Shares and Rights

Per the announcement dated 28 October 2024, in which the Company notified that
the Board and Management would be taking no, or reduced, cash remuneration to
protect the balance sheet of the Company, the following awards have been
proposed via consulting contracts to ensure continued engagement and alignment
as we enter a very important period (the "Awards").

The Awards being issued to each of the members of the Board and Management
will take the form of an issue of ordinary shares of no-par value in the
capital of the Company in lieu of cash payments which have been waived  (the
"Award Shares") and follows the successful closing of the funding announced on
6 December 2024 in which the Company successfully raised £0.85m to finance
the ongoing strategic initiatives of the Company which includes engagement
with a number of potential litigation funders.

The Award Shares are being issued to each of the members of the Board and
Management on the following basis (the "Initial Issue"):

 Name           Position/status          Number of Existing Ordinary Shares  Number of Award Shares  Number of Ordinary Shares held following Admission  % of issued share capital held following Admission
 Graham Clarke  Executive Director, CEO  2,207,553                           6,000,000               8,207,553                                           0.64%
 Hayden Locke   Chairman                 10,082,352                          3,000,000               13,082,352                                          1.02%
 Robert Wrixon  Non-executive Director   47,771,872                          3,000,000               50,771,872                                          3.96%

In addition to the above, the Company announces that a further issue of Award
Shares will be made to those members of the Board and Management in the table
above once the Company has successfully secured litigation funding, as part of
its ongoing dispute with the Moroccan Government (the "Further Issue"). As
part of the Further Issue, these members of the Board and Management will
receive the same allocation of Award Shares as have been made under the
Initial Issue of Award Shares.

The Company will make a further announcement in respect of the Further Issue
of Award Shares once it is appropriate to do so.

Admission and Total Voting Rights

Application has been made to the London Stock Exchange for the Award Shares to
be admitted to trading on AIM ("Admission") and it is expected that Admission
will become effective and dealing in the Placing Shares will commence on or
around the 18 December 2024.  The Award Shares will rank pari passu with
the existing ordinary shares of the Company.

Following Admission, the enlarged issued share capital of the Company will
comprise of 1,281,866,195 ordinary shares of no-par value each. No ordinary
shares are held in Treasury. The total number of voting rights in the Company
is therefore 1,281,866,195.

The above figure of 1,281,866,195 ordinary shares may be used by shareholders
of 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 under the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules.

Update on Notice of Dispute with Moroccan Government

Further to the Company's announcement on 1 November 2024 and 6 December 2024,
the Company notes that there have been no further developments with regards to
the Company's investment dispute with the Government of the Kingdom of
Morocco.

The Company will provide further updates on the status of the dispute as and
when they are able to.

**ENDS**

 For further information, please visit www.emmersonplc.com
 (http://www.emmersonplc.com) , follow us on Twitter (@emmerson_plc), or
 contact:

Emmerson Plc                                                  +44 (0) 207 138 3204

 Graham Clarke / Hayden Locke
 Panmure Liberum Limited (Nominated Adviser and Joint Broker)  +44 (0) 20 3100 2000

 Scott Mathieson / Will King
 Share Capital Partners LLP (Joint Broker)                     +44 (0) 207 186 9927

 Damon Heath / Isabella Pierre

 

 

 

Notes to Editors

Emmerson has been focused on advancing the Khemisset project ("Khemisset" or
the "Project") in Morocco into a low cost, high margin supplier of potash, and
the first primary producer on the African continent. With an initial 19-year
life of mine, the development of Khemisset is expected to deliver long-term
investment and financial contributions to Morocco including the creation of
permanent employment, taxation, and a plethora of ancillary benefits. As a
UK-Moroccan partnership, the Company has been working towards significant
international investment over the life of the mine.

Morocco is one of the leading phosphate producers globally and the development
of this mine is set to consolidate its position as the most important
fertiliser producer in Africa. The Project has a large JORC Resource Estimate
(2012) of 537Mt @ 9.24% K2O, with significant additional exploration
potential, and is perfectly located to support the expected growth of African
fertiliser consumption whilst also being located on the doorstep of European
markets. The need to feed the world's rapidly increasing population is driving
demand for potash and Khemisset is well placed to benefit from the
opportunities this presents. The Feasibility Study released in June 2020
indicated the Project has the potential to be among the lowest capital cost
development stage potash projects in the world and also, as a result of its
location, one of the highest margin projects. Updated financial estimates
published in February 2024 indicated a net present value of US$2.2 billion,
with an internal rate of return of approximately 40%.

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