REG - Touchstone Explrtn. - CANADIAN PRIVATE PLACEMENT & PROPOSED UK PLACING

Touchstone ExplorationAnnouncement

06/12/2022 07:00

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RNS Number : 7268I  Touchstone Exploration Inc.  06 December 2022

THIS ANNOUNCEMENT (INCLUDING THE APPENDICES) AND THE INFORMATION CONTAINED
HEREIN ARE RESTRICTED AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN
WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES,
AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER
JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT CONSTITUTE AN
OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR
OR OTHERWISE ACQUIRE ANY NEW COMMON SHARES OF TOUCHSTONE EXPLORATION INC. IN
ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE
OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED ("MAR"). IN ADDITION,
MARKET SOUNDINGS WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN ‎THIS
ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH
‎INSIDE INFORMATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE
‎INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS
SHALL ‎THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.‎

TOUCHSTONE EXPLORATION INC.

 

CANADIAN PRIVATE PLACEMENT AND PROPOSED UK PLACING TO ACCELERATE EXPLORATION
AND DEVELOPMENT AT ORTOIRE

 

CALGARY, ALBERTA (December 6, 2022) - Touchstone Exploration Inc.
("Touchstone" or the "Company") (TSX, LSE: TXP) announces that the Company
launched a private placement in Canada (the "Canadian Private Placement") at 5
p.m. EST on December 5, 2022 to raise a minimum of C$7.5 million
(approximately US$5.5 million and £4.5 million) up to a maximum of C$10
million (approximately US$7.4 million and £6.1 million) at a price of C$0.90
(approximately 54.5 pence) per Common Share (as defined below) of no par value
(the "Canadian Placement Shares").

 

The Company further announces a proposed placing in the UK (the "UK Placing")
to raise approximately US$5.5 million (approximately £4.5 million and C$7.4
million) through the issue of Common Shares (as defined below) of no par value
(the "UK Placing Shares") with institutional and other investors in the United
Kingdom at a price of 54.5 pence per UK Placing Share (approximately C$0.90)
(the "Placing Price").

 

The Canadian Private Placement and the UK Placing (collectively, the
"Fundraise") are expected to raise aggregate gross proceeds of between US$11
million (approximately £9 million and C$14.9 million) and US$13 million
(approximately £10.6 million and C$17.5 million) to allow Touchstone to
accelerate its Ortoire exploration and development program.

 

In the event of excess demand, the Company reserves the right to increase the
size of the UK Placing and/or the Placing Price. The UK Placing is being
completed by way of an accelerated book building process (the "Bookbuild") and
UK Placees (as defined below) will be subscribing for Common Shares pursuant
to the terms and conditions set out in the Appendix to this announcement.
Shore Capital and Canaccord (each as defined below) are acting as Joint
Bookrunners in connection with the UK Placing.

 

The Bookbuild in respect of the Canadian Private Placement and the UK Placing
is expected to close on or around 3.00 p.m. London Time (10.00 a.m. EST) on
December 6, 2022 but the timing of the closing of the Bookbuild for the UK
Placing is at the absolute discretion of the Joint Bookrunners and the
Company.

 

Background to the Fundraise and Use of Proceeds

 

In recent years, the Company has been focusing on its successful exploration
and development program on the Ortoire block, onshore in the Republic of
Trinidad and Tobago (Touchstone 80% working interest), which has identified
significant natural gas discoveries at the Coho and Cascadura projects and an
oil discovery at Royston.

 

Touchstone recently completed the development of its facility at Coho and
announced initial natural gas production on October 10, 2022, with the Coho-1
well delivering average net natural gas sales of 7.3 MMcf/d (approximately
1,212 boe/d) over 19 operational days in October.

 

On August 16, 2022, the Company received a Certificate of Environmental
Clearance ("CEC") to conduct development operations within the Cascadura area
of the Ortoire block from the Trinidad and Tobago Environmental Management
Authority. The CEC approved the construction of a multi-well surface
production facility with a designed production capacity of 200 MMcf/d of
natural gas, 5,000 bbls/d of associated liquids and 200 bbls/d of produced
water, with a storage capacity of 8,800 barrels of liquids on the Cascadura A
wellsite. In addition to the facility, the CEC includes the drilling of up to
eight wells on two additional well pads (Cascadura B and C) and the
establishment of associated pipelines and infrastructure within the Ortoire
block.

 

Construction of the Cascadura surface facility and associated infrastructure
required to bring production online from the two existing Cascadura wells is
in progress. Once production at Cascadura is online, which the Company
anticipates will be by the end of the first quarter of 2023, initial gross
aggregate natural gas and associated liquids production from the
Cascadura-1ST1 and Cascadura Deep-1 wells, based on previous well tests, has
been forecasted at approximately 11,500 boe/d (9,200 boe/d net).

 

In addition to the development of the Cascadura facility, the Company has a
portfolio of further exploration and development drilling targets at the
Ortoire block. In order to allow the Company to continue to accelerate these
prospective exploration, development and production opportunities while the
Company's cash balance and cash flows from operations are being allocated
towards the Cascadura facility construction, Touchstone is seeking to complete
the Canadian Private Placement and the UK Placing in order to side track
Royston-1ST1 to drill and test the intermediate and subthrust sheets of the
Herrera Formation. Net proceeds will also be applied to bring forward the
drilling and potential completion of the Cascadura-2 development well.

 

The funds raised will strengthen the Company's balance sheet and the Company
also intends to use a portion of the net proceeds for working capital purposes
as it continues constructing the Cascadura facility.

 

Details of the UK Placing

 

The UK Placing is being completed within the Company's existing share issuance
authorities. Shore Capital and Corporate Limited and Shore Capital
Stockbrokers Limited (together, "Shore Capital") and Canaccord Genuity Limited
("Canaccord") (Shore Capital and Canaccord together, the "Joint Bookrunners")
will be conducting an accelerated book building process, in respect of the UK
Placing. The book will open with immediate effect. Shore Capital and Canaccord
have entered into an agreement with Touchstone (the "Placing Agreement") under
which, subject to the conditions set out therein, Shore Capital and Canaccord
will agree to use their respective reasonable endeavours to procure
subscribers for the UK Placing Shares at the Placing Price. The UK Placing is
subject to the terms and conditions set out in the Appendix to this
announcement, including the completion of the Canadian Private Placement.
Members of the public are not entitled to participate in the UK Placing. The
Placing Price represents a 13.5 percent discount to 63 pence, being the
closing price of the Common Shares on the AIM market of the London Stock
Exchange ("AIM") on December 5, 2022.

 

The UK Placing Shares will, when issued, be credited as fully paid and will
rank pari passu in all respects with Touchstone's existing issued common
shares of no par value each ("Common Shares"). The number of UK Placing Shares
to be allotted and issued by the Company pursuant to the UK Placing will be
determined at the close of the Bookbuild. It is envisaged that the Bookbuild
will close no later than 3.00 p.m. (London Time) on December 6, 2022 but the
timing of the closing of the Bookbuild and allocations are at the absolute
discretion of the Joint Bookrunners and the Company. Details of the final
number of UK Placing Shares and the Placing Price will be announced as soon as
practicable after the closing of the Bookbuild. The UK Placing is not being
underwritten. The UK Placing is conditional upon the completion of the
Canadian Private Placement and the admission to trading and settlement of the
Canadian Placement Shares. The Placing Price for UK Placees (as defined below)
pursuant to the UK Placing has been translated at a fixed exchange rate of
£1.00 to C$1.65 such that it will be the same price in pounds sterling
equivalent as for placees participating in the Canadian Private Placement.

Details of the Canadian Private Placement

The Canadian Private Placement is separate to and is being managed distinctly
from the UK Placing. UK investors are not entitled to participate in the
Canadian Private Placement. The placement of the Canadian Placement Shares in
Canada is not conditional upon the completion of the UK Placing nor on the
admission to trading and settlement of the UK Placing Shares.

 

Admission and Settlement

 

Application will be made for the Canadian Placement Shares and the UK Placing
Shares to be admitted to trading on AIM ("Admission") and the Toronto Stock
Exchange (the "TSX"). It is expected that Admission will take place at or
around 8.00 a.m. (London time) on December 14, 2022 (or such later date as may
be agreed between the Company, Shore Capital and Canaccord). The UK Placing is
conditional upon, inter alia, the completion of the Canadian Private Placement
and Admission becoming effective. The UK Placing is also conditional upon the
Placing Agreement not being terminated in accordance with its terms.

 

UK Placing Shares issued in connection with the UK Placing will be subject to
a four-month and one day restricted hold period which will prevent such UK
Placing Shares from being resold in Canada, through a Canadian exchange or
otherwise, during the restricted period without an exemption from the Canadian
prospectus requirement. Any such UK Placing Shares will otherwise be freely
transferable.

 

This announcement should be read in its entirety. In particular, you should
read and understand the Appendix and the information provided in the
"Important Notice to Investors" section of this announcement.

 

Touchstone Exploration Inc.

 

Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the
business of acquiring interests in petroleum and natural gas rights and the
exploration, development, production and sale of petroleum and natural gas.
Touchstone is currently active in onshore properties located in the Republic
of Trinidad and Tobago. The Company's Common Shares are traded on the Toronto
Stock Exchange and the AIM market of the London Stock Exchange under the
symbol "TXP".

 

For further information about Touchstone, please visit our website at
www.touchstoneexploration.com (http://www.touchstoneexploration.com) or
contact:

 

Touchstone Exploration Inc.

Mr. Paul Baay, President and Chief Executive
Officer                             Tel: +1 (403)
750-4487

Mr. Scott Budau, Chief Financial Officer

 

Shore Capital (Nominated Advisor and Joint Broker)

Daniel Bush / Toby Gibbs / Iain Sexton
                                    Tel:
+44 (0) 207 408 4090

 

Canaccord (Joint Broker)

Adam James / Gordon Hamilton

Sam Lucas / Darren Furby
 
                        Tel: +44 (0) 207 523 8000

 

Camarco (Financial PR)

Billy Clegg / Emily Hall / Lily Pettifar
                                    Tel:
+44 (0) 203 781 8330

 

Advisories

 

Exchange Rate

 

For reference purposes in this announcement, one British pound has been
converted into United States dollars at a rate of 1.00 to US$1.22 and Canadian
dollars at a rate of 1.00 to C$1.65.

 

Forward-looking Statements

 

Certain information provided in this announcement may constitute
forward-looking statements and information (collectively, "forward-looking
statements") within the meaning of applicable securities laws. Such
forward-looking statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject to
assumptions, risks and uncertainties, many of which are beyond the control of
the Company. Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates", "projects",
"potential" and similar expressions, or are events or conditions that "will",
"would", "may", "could" or "should" occur or be achieved.

 

Forward-looking statements in this announcement include, but are not limited
to, those in respect of the UK Placing and the Canadian Private Placement,
including the size, pricing and timing thereof, the type of securities being
offered thereunder, the investors participating therein, the intended use of
proceeds therefrom (including with respect to future exploration, development
and production activities and the locations thereof), the conditions and
approvals required and applications being filed in connection therewith, the
expected construction of the Cascadura facility and timing thereof, and the
expectation of bringing exploration wells to production and the forecasted
production rates derived from previous well production tests. Although the
Company believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because the Company can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks. Certain of
these risks are set out in more detail in the Company's December 31, 2021
Annual Information Form dated March 25, 2022 which has been filed on SEDAR and
can be accessed at www.sedar.com (http://www.sedar.com) . The forward-looking
statements contained in this announcement are made as of the date hereof, and
except as may be required by applicable securities laws, the Company assumes
no obligation nor intent to update publicly or revise any forward-looking
statements made herein or otherwise, whether as a result of new information,
future events or otherwise.

 

Oil and Gas Measures

 

Where applicable, natural gas has been converted to barrels of oil equivalent
based on six thousand cubic feet to one barrel of oil. The barrel of oil
equivalent rate is based on an energy equivalent conversion method primarily
applicable at the burner tip, and given that the value ratio based on the
current price of crude oil as compared to natural gas is significantly
different than the energy equivalency of the 6:1 conversion ratio, utilizing
the 6:1 conversion ratio may be misleading as an indication of value.

 

Abbreviations

 

bbls/d               barrels per day

boe                  barrels of oil equivalent

boe/d               barrels of oil equivalent per day

MMcf/d             million cubic feet per day

NGL(s)              natural gas liquids

 

Important Notice to Investors

 

Members of the public are not eligible to take part in the UK Placing. This
announcement (including the Appendix) and the terms and conditions set out
herein are for information purposes only and are directed only at persons
whose ordinary activities involve them acquiring, holding, managing and
disposing of investments (as principal or agent) for the purposes of their
business and who have professional experience in matters relating to
investments and are: (A) if in a member state of the European Economic Area
(the "EEA"), persons who are qualified investors ("Qualified Investors"),
being persons falling within the meaning of Article 2(e) of the Prospectus
Regulation (EU) 2017/1129; ("EU Prospectus Regulation") or (B) if in the
United Kingdom, qualified investors as defined under Article 2(e) of the UK
version of the Prospectus Regulation (EU) 2017/1129, which forms part of the
domestic law by virtue of European Union (Withdrawal) Act 2018, as amended,
("UK Prospectus Regulation") who are also (i) investment professionals falling
within Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005, as amended (the "Order"); or (ii) high net worth
companies, unincorporated associations and other persons falling within
Article 49(2)(a) to (d) of the Order; or (C) persons to whom it may otherwise
by lawfully communicated (all such persons referred to in (A), (B) and (C)
above together being referred to as "Relevant Persons"). No prospectus,
offering document or admission document will be made available in connection
with the matters contained in this announcement.

 

This announcement and any other documentation that may be delivered directly
to certain persons in connection with the UK Placing may constitute offering
documents as defined under applicable securities laws in certain
jurisdictions. Otherwise, no prospectus, offering document or admission
document will be made available in connection with the matters contained in
this announcement.

 

This announcement, including the terms and conditions set out in the Appendix,
must not be acted on or relied on by persons who are not Relevant Persons.
Persons distributing this announcement must satisfy themselves that it is
lawful to do so. Any investment or investment activity to which this
announcement relates is available only to Relevant Persons and will be engaged
in only with Relevant Persons. This announcement does not itself constitute an
offer for sale or subscription of any securities in the Company. Persons
distributing this announcement must satisfy themselves that is lawful to do
so. This announcement is for information only and does not constitute an offer
to sell, or a solicitation of an offer to buy or otherwise acquire, any
securities in any jurisdiction in which it is unlawful to do so.

 

Persons needing advice should consult an independent financial adviser.

 

Persons (including, without limitation, nominees and trustees) who have a
contractual or other legal obligation to forward a copy of this announcement
should seek appropriate advice before taking any action.

 

Neither this announcement nor any copy of it may be taken or transmitted,
published or distributed, directly or indirectly, in whole or in part, in,
into or from the United States of America (including its territories and
possessions, any state of the United States of America (the "United States" or
the "US")), Australia, New Zealand, Japan or the Republic of South Africa or
transmitted, distributed to, or sent by, any national or resident or citizen
of any such countries or any other jurisdiction where to do so would
constitute a violation of the relevant securities laws of such jurisdiction
(each a "Restricted Jurisdiction"). Any failure to comply with this
restriction may constitute a violation of securities laws in the Restricted
Jurisdictions.

 

This announcement is not being distributed by, nor has it been approved for
the purposes of section 21 of the Financial Services and Markets Act 2000, as
amended ("FSMA") by, Shore Capital, Canaccord or any other person authorised
under FSMA. This announcement is being distributed and communicated to persons
in the United Kingdom only in circumstances in which section 21(1) of FSMA
does not apply or otherwise falls within a relevant exemption. No prospectus
will be made available in connection with the matters contained in this
announcement and all offers of the UK Placing Shares will be made pursuant to
an exemption under the EU Prospectus Regulation and the UK Prospectus
Regulation from the requirement to produce a prospectus. Persons needing
advice should consult an independent financial adviser.

 

Persons (including without limitation, nominees and trustees) who have a
contractual right or other legal obligations to forward a copy of this
announcement should seek appropriate advice before taking any action.

 

This announcement does not constitute, or form part of, any offer or
invitation to sell or issue, or any solicitation of any offer to purchase or
subscribe for any shares or other securities in Canada or the Restricted
Jurisdictions. The UK Placing and the distribution of this announcement and
other information in connection with the UK Placing in certain jurisdictions
may be restricted by law and persons into whose possession this announcement
and any document or other information referred to herein comes should inform
themselves about and observe any such restrictions. Any failure to comply with
these restrictions may constitute a violation of the securities laws of any
such jurisdiction.

 

No action has been taken by the Company, Shore Capital, Canaccord or any of
their respective directors, officers, partners, agents, employees or
affiliates that would permit an offer of the UK Placing Shares or possession
or distribution of this announcement or any other publicity material relating
to such UK Placing Shares in any jurisdiction where action for that purpose is
required. Persons receiving this announcement are required to inform
themselves about and to observe any such restrictions.

 

The UK Placing Shares referred to in this announcement have not been and will
not be registered under the United States Securities Act of 1933, as amended
(the "US Securities Act") or under the securities laws of any state or other
jurisdiction of the United States, and may not be offered, sold or transferred
within the United States except pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the US Securities
Act. The UK Placing Shares have not been and will not be approved or
disapproved by the US Securities and Exchange Commission, any state securities
commission or other regulatory authority in the United States, nor have any of
the foregoing authorities passed upon or endorsed the merits of the UK Placing
or the accuracy or adequacy of this announcement. Any representation to the
contrary is a criminal offence in the United States.

 

This announcement has been issued by and is the sole responsibility of the
Company. The information contained in this announcement is for background
purposes only and does not purport to be full or complete and shall not
constitute an offer to sell or issue or the solicitation of an offer to buy,
subscribe for or otherwise acquire securities in any jurisdiction in which any
such offer or solicitation would be unlawful. Any failure to comply with this
restriction may constitute a violation of the securities laws of such
jurisdictions.

 

No reliance may or should be placed for any purposes whatsoever on the
information contained in this announcement or its accuracy, completeness or
fairness. The information in this announcement is subject to change. The
Company does not undertake to provide the recipient of this announcement with
any additional information, or to update this announcement or to correct any
inaccuracies, and the distribution of this announcement shall not be deemed to
be any form of commitment on the part of the Company to proceed with the UK
Placing or any transaction or arrangement referred to in this announcement.

 

Any indication in this announcement of the price at which the Common Shares
have been bought or sold in the past cannot be relied upon as a guide to
future performance. Persons needing advice should consult an independent
financial adviser. No statement in this announcement is intended to be a
profit forecast and no statement in this announcement should be interpreted to
mean that earnings per share of the Company for the current or future
financial years would necessarily match or exceed the historical published
earnings per share of the Company.

 

Shore Capital and Corporate Limited ("SCC") is nominated advisor to the
Company. SCC, which is authorised and regulated by the Financial Conduct
Authority ("FCA"), is acting exclusively for the Company and no one else in
connection with the proposed UK Placing and will not be acting for any other
person or otherwise responsible to any person other than the Company for
providing the protections afforded to clients of SCC or for advising any other
person in respect of the UK Placing.

 

Shore Capital Stockbrokers Limited ("SCS") has been appointed as broker to the
Company in respect of the UK Placing. SCS, which is authorised and regulated
by the FCA, is acting exclusively for the Company and no one else in
connection with the proposed UK Placing and will not be acting for any other
person or otherwise responsible to any person other than the Company for
providing the protections afforded to clients of SCS or for advising any other
person in respect of the UK Placing.

 

Canaccord is authorised and regulated by the FCA and is acting exclusively for
the Company and no one else in connection with the proposed UK Placing and
will not be acting for any other person or otherwise responsible to any person
other than the Company for providing the protections afforded to clients of
Canaccord or for advising any other person in respect of the UK Placing.

No representation or warranty, express or implied, is or will be made as to,
or in relation to, and no responsibility or liability is or will be accepted
by Shore Capital, Canaccord or by any of their affiliates or their affiliates'
agents, directors, officers and employees, respectively, as to, or in relation
to, the accuracy or completeness of this announcement or any other written or
oral information made available to or publicly available to any interested
party or its advisers, and any liability therefor is expressly disclaimed.

 

By participating in the Bookbuild and the UK Placing, each person who is
invited to and who chooses to participate in the UK Placing (each a "UK
Placee") by making an oral and legally binding offer to acquire UK Placing
Shares will be deemed to have read and understood this announcement in its
entirety, to be participating, making an offer and acquiring UK Placing Shares
on the terms and conditions contained in the Appendix to this announcement and
to be providing the representations, warranties, indemnities, acknowledgements
and undertakings contained in the Appendix to this announcement.

 

This announcement does not constitute a recommendation concerning any
investor's options with respect to the UK Placing. The price of the UK Placing
Shares and any income expected from them may go down as well as up and
investors may not get back the full amount invested upon disposal of the UK
Placing Shares. Past performance is no guide to future performance. The
contents of this announcement are not to be construed as legal, business,
financial or tax advice. Each investor or prospective investor should consult
his, her or its own legal adviser, business adviser, financial adviser or tax
adviser for legal, financial, business or tax advice.

 

Neither the content of the Company's website nor any website accessible by
hyperlinks on the Company's website is incorporated in, or forms part of, this
announcement.

 

This announcement contains inside information for the purposes of MAR. Upon
publication of this announcement, the inside information is now considered to
be in the public domain for the purposes of MAR. The person responsible for
arranging release of this information on behalf of the Company is Paul Baay.

 

Information to Distributors - UK Product Governance Requirements

 

Solely for the purposes of the product governance requirements of Chapter 3 of
the FCA Handbook Product Intervention and Product Governance Sourcebook (the
"UK MiFIR Product Governance Requirements"), and disclaiming all and any
liability, whether arising in tort, contract or otherwise, which any
"manufacturer" (for the purposes of the UK MiFIR Product Governance
Requirements) may otherwise have with respect thereto, the UK Placing Shares
have been subject to a product approval process, which has determined that the
UK Placing Shares are: (i) compatible with an end target market of retail
investors and investors who meet the criteria of professional clients and
eligible counterparties, as respectively defined in paragraphs 3.5 and 3.6 of
COBS; and (ii) eligible for distribution through all permitted distribution
channels (the "Target Market Assessment").

 

Notwithstanding the Target Market Assessment, distributors should note that:
the price of the UK Placing Shares may decline and investors could lose all or
part of their investment; the UK Placing Shares offer no guaranteed income and
no capital protection; and an investment in the UK Placing Shares is
compatible only with investors who do not need a guaranteed income or capital
protection, who (either alone or in conjunction with an appropriate financial
or other adviser) are capable of evaluating the merits and risks of such an
investment and who have sufficient resources to be able to bear any losses
that may result therefrom. The Target Market Assessment is without prejudice
to any contractual, legal or regulatory selling restrictions in relation to
the UK Placing. Furthermore, it is noted that, in relation to the UK Placing,
notwithstanding the Target Market Assessment, Shore Capital and Canaccord will
only procure investors who meet the criteria of professional clients and
eligible counterparties. For the avoidance of doubt, the Target Market
Assessment does not constitute: (a) an assessment of suitability or
appropriateness for the purposes of Chapters 9A or 10A respectively of COBS;
or (b) a recommendation to any investor or group of investors to invest in, or
purchase, or take any other action whatsoever with respect to the UK Placing
Shares.

 

Each distributor is responsible for undertaking its own target market
assessment in respect of the UK Placing Shares and determining appropriate
distribution channels.

APPENDIX - TERMS AND CONDITIONS OF THE UK PLACING

 

IMPORTANT INFORMATION FOR INVITED UK PLACEES ONLY REGARDING THE UK PLACING

 

MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE UK PLACING. THIS
ANNOUNCEMENT, INCLUDING THIS APPENDIX (TOGETHER, THE "ANNOUNCEMENT"), AND THE
INFORMATION IN IT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR
DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM
THE UNITED STATES, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA
OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE
UNLAWFUL (EACH A "RESTRICTED JURISDICTION").

 

THIS ANNOUNCEMENT (INCLUDING THIS APPENDIX) AND THE TERMS AND CONDITIONS SET
OUT HEREIN (TOGETHER, THIS "ANNOUNCEMENT") ARE FOR INFORMATION PURPOSES ONLY
AND ARE DIRECTED ONLY AT PERSONS WHOSE ORDINARY ACTIVITIES INVOLVE THEM IN
ACQUIRING, HOLDING, MANAGING AND DISPOSING OF INVESTMENTS (AS PRINCIPAL OR
AGENT) FOR THE PURPOSES OF THEIR BUSINESS AND WHO HAVE PROFESSIONAL EXPERIENCE
IN MATTERS RELATING TO INVESTMENTS AND ARE: (A) IF IN MEMBER STATES OF THE
EUROPEAN ECONOMIC AREA (THE "EEA"), PERSONS WHO ARE QUALIFIED INVESTORS WITHIN
THE MEANING OF ARTICLE 2(E) OF REGULATION (EU) 2017/1129 (THE "EU PROSPECTUS
REGULATION") ("EU QUALIFIED INVESTORS"); OR (B) IF IN THE UNITED KINGDOM,
QUALIFIED INVESTORS WITHIN THE MEANING OF ARTICLE 2(E) OF THE UK VERSION OF
REGULATION (EU) 2017/1129 AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN
UNION (WITHDRAWAL) ACT 2018, AS AMENDED (THE "UK PROSPECTUS REGULATION") WHO
ARE (I) PERSONS WHO FALL WITHIN THE DEFINITION OF "INVESTMENT PROFESSIONALS"
IN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL
PROMOTION) ORDER 2005, AS AMENDED (THE "ORDER"), OR (II) PERSONS WHO ARE HIGH
NET WORTH COMPANIES, UNINCORPORATED ASSOCIATION" OR PARTNERSHIPS OR TRUSTEES
OF HIGH VALUE TRUSTS AS DESCRIBED IN ARTICLE 49(2)(A) TO (D) OF THE ORDER ("UK
QUALIFIED INVESTORS"); OR (C) OTHERWISE, PERSONS TO WHOM IT MAY OTHERWISE BE
LAWFUL TO COMMUNICATE IT TO (EACH SUCH PERSONS IN (A), (B) AND (C) REFERRED TO
AS "RELEVANT PERSONS"). NO OTHER PERSON SHOULD ACT OR RELY ON THIS
ANNOUNCEMENT. BY ACCEPTING THE TERMS OF THIS ANNOUNCEMENT, YOU REPRESENT AND
AGREE THAT YOU ARE A RELEVANT PERSON. THIS APPENDIX AND THE TERMS AND
CONDITIONS SET OUT HEREIN MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE
NOT RELEVANT PERSONS. PERSONS DISTRIBUTING THIS ANNOUNCEMENT MUST SATISFY
THEMSELVES THAT IT IS LAWFUL TO DO SO. ANY INVESTMENT OR INVESTMENT ACTIVITY
TO WHICH THIS ANNOUNCEMENT AND THE TERMS AND CONDITIONS SET OUT HEREIN RELATE
IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH
RELEVANT PERSONS.

 

This Announcement does not constitute or form part of any offer to sell, or
any solicitation of an offer to buy, securities in the United States. The UK
Placing Shares have not been and will not be registered under the U.S.
Securities Act of 1933, as amended (the "US Securities Act"), or under the
securities laws of any state or other jurisdiction of the United States and
may not be offered, sold, resold or delivered, directly or indirectly, in or
into the United States absent registration except pursuant to an exemption
from or in a transaction not subject to the registration requirements of the
US Securities Act. No public offering of the UK Placing Shares is being made
in the United States. The UK Placing Shares are being offered and sold outside
the United States in offshore transactions, as defined in, and in compliance
with, Regulation S under the US Securities Act. Persons receiving this
Announcement (including custodians, nominees and trustees) must not forward,
distribute, mail or otherwise transmit it in or into the United States or use
the United States mails, directly or indirectly, in connection with the UK
Placing.

 

This Announcement does not constitute an offer to sell or issue or a
solicitation of an offer to buy or subscribe for UK Placing Shares in any
jurisdiction including, without limitation, the Restricted Jurisdictions or
any other jurisdiction in which such offer or solicitation is or may be
unlawful. This Announcement and the information contained in it is not for
publication or distribution, directly or indirectly, to persons in a
Restricted Jurisdiction unless permitted pursuant to an exemption under the
relevant local law or regulation in any such jurisdiction.

No prospectus has been lodged with or registered by the Australian Securities
and Investments Commission or the Japanese Ministry of Finance or the South
African Reserve Bank; and the UK Placing Shares have not been, nor will they
be, registered under or offered in compliance with the securities laws of any
state, province or territory of Australia, Japan or the Republic of South
Africa. Accordingly, the UK Placing Shares may not (unless an exemption under
the relevant securities laws is applicable) be offered, sold, resold or
delivered, directly or indirectly, in or into Australia, Japan, the Republic
of South Africa or any other jurisdiction in which such offer, sale, resale or
delivery would be unlawful.

 

By participating in the UK Placing, each person who is invited to and who
chooses to participate in the UK Placing (a "UK Placee") by making or
accepting an oral offer to subscribe for UK Placing Shares is deemed to have
read and understood this Announcement in its entirety (including this
Appendix) and to be providing the representations, warranties, undertakings,
agreements and acknowledgements contained in this Appendix to the Company,
Shore Capital and Canaccord.

 

Persons (including, without limitation, nominees and trustees) who have a
contractual or other legal obligation to forward a copy of this Appendix or
this Announcement of which it forms part should seek appropriate advice before
taking any action.

 

These terms and conditions apply to persons making an offer to acquire UK
Placing Shares that were offered the UK Placing Shares. They do not apply to
the Canadian Private Placement. Each UK Placee will be deemed to have read and
understood this Announcement (including this Appendix) and hereby agrees with
Shore Capital, Canaccord and the Company to be bound by these terms and
conditions as being the terms and conditions upon which UK Placing Shares will
be issued or acquired. A UK Placee shall, without limitation, become so bound
if Shore Capital or Canaccord confirms to such UK Placee its allocation of UK
Placing Shares.

 

Upon being notified of its allocation of UK Placing Shares, a UK Placee shall
be contractually committed to acquire the number of UK Placing Shares
allocated to it at the Placing Price and, to the fullest extent permitted by
law, will be deemed to have agreed not to exercise any rights to rescind or
terminate or otherwise withdraw from such commitment.

 

EACH UK PLACEE SHOULD CONSULT WITH ITS OWN ADVISERS AS TO THE LEGAL,
REGULATORY, TAX, BUSINESS AND RELATED ASPECTS OF A SUBSCRIPTION OF UK PLACING
SHARES. THE PRICE OF SHARES AND THE INCOME FROM THEM (IF ANY) MAY GO DOWN AS
WELL AS UP AND INVESTORS MAY NOT GET BACK THE FULL AMOUNT INVESTED ON DISPOSAL
OF SHARES.

 

Bookbuild

 

Following this Announcement, the Joint Bookrunners will today commence an
accelerated book building process in respect of the UK Placing (the
"Bookbuild") to determine demand for participation in the UK Placing by UK
Placees. This Appendix gives details of the terms and conditions of, and the
mechanics of participation in, the UK Placing. No commissions will be paid to
UK Placees or by UK Placees in respect of any UK Placing Shares. Members of
the public are not entitled to participate.

 

The Joint Bookrunners shall be entitled to effect the UK Placing by such
alternative method to the Bookbuild as they may, in consultation with the
Company, determine.

 

Details of the Placing Agreement and the UK Placing Shares

 

The Company has today entered into a placing agreement (the "Placing
Agreement") with Shore Capital and Corporate Limited and Shore Capital
Stockbrokers Limited (together, "Shore Capital") and Canaccord Genuity Limited
("Canaccord"). Pursuant to the Placing Agreement, Shore Capital and Canaccord
have, subject to the terms set out in such agreement, agreed to use reasonable
endeavours, as agent of the Company, to procure UK Placees for the UK Placing
Shares (the " UK Placing").

 

The UK Placing Shares will, when issued, be subject to the articles of
incorporation of the Company, be credited as fully paid and will rank pari
passu in all respects with each other and with the existing Common Shares in
the Company, including the right to receive all dividends and other
distributions declared, made or paid in respect of the Common Shares after the
date of issue of the UK Placing Shares. The UK Placing Shares will be issued
free of any encumbrance, lien, claim, charge, equity and third-party right.

 

Application for Admission

 

Application will be made for the UK Placing Shares and the Canadian Placement
Shares to be admitted to trading on the AIM market of the London Stock
Exchange ("AIM") ("Admission") and the Toronto Stock Exchange (the "TSX"). It
is expected that Admission will become effective and that dealings in the UK
Placing Shares and Canadian Placement Shares will commence on December 14,
2022 (or such later date as Shore Capital, Canaccord and the Company may agree
in writing). In any event, the latest date for Admission is December 31,
2022 (the "Long Stop Date") (or such later date as Shore Capital, Canaccord
and the Company may agree in writing).

 

Principal Terms of the UK Placing for UK Placees

 

This Appendix gives UK Placees details of the terms and conditions of, and the
mechanics of participation in, the UK Placing.

1.   Shore Capital and Canaccord are acting as agents of the Company in
connection with the UK Placing on the terms and subject to the conditions of
the Placing Agreement.

2.   Participation in the UK Placing will only be available to persons who
may lawfully be, and are, invited by Shore Capital or Canaccord to
participate. Shore Capital, Canaccord and any of their affiliates are entitled
to participate in the UK Placing as principal.

3.   To bid in the Bookbuild, prospective UK Placees should communicate
their bid by telephone or email to their usual sales contact at Shore Capital
or Canaccord. Each bid should state the number of UK Placing Shares which the
prospective Placee wishes to subscribe for at the Placing Price. Bids may be
scaled down by Shore Capital on the basis referred to in paragraph 5 below.

4.   The price per Placing Share (the "Placing Price") is a price of 54.5
pence and is payable to the Joint Bookrunners (as agent for the Company) by
all Placees.

5.   The Bookbuild closing time is at the discretion of the Joint
Bookrunners and the Bookbuild is expected to close in short order. Shore
Capital and Canaccord may, in agreement with the Company, accept bids received
after the Bookbuild has closed. Shore Capital and Canaccord may choose to
accept bids, either in whole or in part, on the basis of allocations
determined at their discretion (in agreement with the Company) and may scale
down any bids for this purpose on such basis as they may determine.

6.   The final number of UK Placing Shares to be issued in the UK Placing
and the final Placing Price will be determined following conclusion of the
Bookbuild and will be communicated through a further announcement by or on
behalf of the Company through a Regulatory Information Service.

7.   The Company, Shore Capital and Canaccord reserve the right: (i) to
scale back the number of UK Placing Shares to be subscribed for by any UK
Placee in the event of the UK Placing being over-subscribed; and (ii) not to
accept offers for UK Placing Shares or to accept such offers in part rather
than in full. The Company reserves the right to reduce the amount to be raised
pursuant to the UK Placing, in agreement with Shore Capital and Canaccord.

8.   A bid in the Bookbuild will be made on the terms and subject to the
conditions in this Appendix and will be legally binding on the UK Placee on
behalf of which it is made and, except with Shore Capital's and Canaccord's
consent, will not be capable of variation or revocation after the time at
which it is submitted.

9.   Each prospective UK Placee's allocations of UK Placing Shares will be
determined by Shore Capital and Canaccord in accordance with the principles of
allocation discussed between Shore Capital, Canaccord and the Company and will
be confirmed orally to UK Placees by Shore Capital or Canaccord, and each UK
Placee's allocation and commitment will be evidenced by a contract note issued
to such UK Placee by Shore Capital or Canaccord, the form of which will be
dispatched to each UK Placee as soon as possible after its allocation of UK
Placing Shares has been confirmed orally to it by Shore Capital or Canaccord.
The terms of this Appendix will be deemed incorporated in that contract note.

10.  Shore Capital's or Canaccord's oral confirmation of an allocation of UK
Placing Shares will give rise to an irrevocable, legally binding commitment by
that person (who at that point becomes a UK Placee ), in favour of Shore
Capital or Canaccord and the Company, under which it agrees to acquire the
number of UK Placing Shares allocated to it on the terms and subject to the
conditions set out in this Appendix and in accordance with the Company's
articles of incorporation and each UK Placee will be deemed to have read and
understood this announcement (including this Appendix) in its entirety.

11.  Each UK Placee's allocation and commitment to subscribe for UK Placing
Shares will be made on the terms and subject to the conditions in this
Appendix and will be legally binding on the UK Placee on behalf of which it is
made and, except with Shore Capital's and Canaccord's consent, will not be
capable of variation or revocation after the time at which it is submitted.

12.  Each UK Placee will have an immediate, separate, irrevocable and binding
obligation, owed to Shore Capital and/or Canaccord, as agent for the Company,
to pay to it (or as it may direct) in cleared funds an amount equal to the
product of the Placing Price and the number of UK Placing Shares such UK
Placee has agreed to acquire and the Company has agreed to allot and issue to
that UK Placee.

13.  Except as required by law or regulation, no press release or other
announcement will be made by Shore Capital, Canaccord or the Company using the
name of any UK Placee (or its agent), in its capacity as UK Placee (or agent),
other than with such UK Placee's prior written consent.

14.  Irrespective of the time at which a UK Placee's allocation(s) pursuant
to the UK Placing is/are confirmed, settlement for all UK Placing Shares to be
acquired pursuant to the UK Placing by UK Placees will be required to be made
at the same time, on the basis explained below under "Registration and
Settlement".

15.  All obligations under the UK Placing will be subject to fulfilment of
the conditions referred to below under "Conditions of the UK Placing" and to
the Placing not being terminated on the basis referred to below under "Right
to Terminate under the Placing Agreement".

16.  By participating in the UK Placing, each UK Placee agrees that its
rights and obligations in respect of the UK Placing will terminate only in the
circumstances described below and will not be capable of rescission or
termination by the UK Placee.

17.  To the fullest extent permissible by law and the applicable rules of the
Financial Conduct Authority, none of: (a) Shore Capital, (b) Canaccord, (c)
the Company, nor (d) any of their affiliates, agents, directors, officers,
consultants or employees nor (e) to the extent not contained within (a), (b),
(c) or (d), any person connected with Shore Capital, Canaccord or the Company
as defined in the Financial Services and Markets Act 2000 ((d) and (e) being
together "Affiliates" and individually an "Affiliate") shall have any
liability (including to the extent permissible by law, any fiduciary duties)
to UK Placees or to any other person whether acting on behalf of a UK Placee
or otherwise. In particular, none of Shore Capital, Canaccord, the Company nor
any of their Affiliates shall have any liability (including, to the extent
permissible by law, any fiduciary duties) in respect of Shore Capital or
Canaccord's conduct of the UK Placing or of such alternative method of
effecting the UK Placing as Shore Capital, Canaccord and the Company may
agree. Nothing in this Appendix shall be effective to limit or exclude any
liability for fraud or which, by law or regulation, cannot otherwise be so
limited or excluded.

Conditions of the UK Placing

 

The UK Placing is conditional upon the Placing Agreement becoming
unconditional and not having been terminated in accordance with its terms.

 

The obligations of Shore Capital and Canaccord under the Placing Agreement are
conditional, inter alia, on:

1.   the warranties on the part of the Company contained in the Placing
Agreement being true and accurate on and as of the date of the Placing
Agreement and on Admission;

2.   the fulfilment by the Company in all material respects of its
obligations under the Placing Agreement to the extent that such obligations
fail to be performed prior to Admission;

3.   the Company delivering, by no later than 3.00 p.m. (London time) on the
dealing day immediately prior to the expected date of Admission (but dated the
day of such Admission), to Shore Capital and Canaccord a certificate
confirming, inter alia, that none of the warranties given by the Company in
the Placing Agreement were untrue, inaccurate or misleading in any material
respect when made or would cease to be true and accurate or would become
misleading in any material respect were it to be repeated by reference to the
facts and circumstances subsisting as at immediately prior to such Admission;

4.   receipt of the conditional acceptance of the TSX of the UK Placing and
Canadian Private Placement in accordance with Part VI of the TSX Company
Manual subject to the fulfilment of certain requirements of the TSX;

5.   the completion of the Canadian Private Placement;

6.   the obligations of Shore Capital and Canaccord not having been
terminated pursuant to the Placing Agreement and the Placing Agreement
otherwise becoming unconditional; and

7.   Admission occurring not later than 8.00 a.m. (London time) on or around
December, 14, 2022 (or such later date as the Company, Shore Capital and
Canaccord may agree, in any event being no later than the Long Stop Date).

If (a) any of the conditions contained in the Placing Agreement, including
those described above, are not fulfilled (or to the extent permitted under the
Placing Agreement, waived by Shore Capital and Canaccord) by the relevant time
or date specified in the Placing Agreement (or such later time or date as
Shore Capital and Canaccord may notify to the Company), or (b) the Placing
Agreement is terminated in the circumstances specified below, the UK Placing
will not proceed and each UK Placee's rights and obligations hereunder shall
cease and terminate at such time and each UK Placee agrees that no claim may
be made by or on behalf of a UK Placee (or any person on whose behalf the UK
Placee is acting) in respect thereof. Neither Shore Capital, Canaccord, the
Company nor any of their respective Affiliates shall have any liability to any
UK Placee (or to any other person whether acting on behalf of a UK Placee or
otherwise) in respect of any decision they may make as to whether or not to
waive or to extend the time and/or date for the satisfaction of any condition
in the Placing Agreement or in respect of the UK Placing generally. UK Placees
will have no rights against Shore Capital, Canaccord, the Company or any of
their respective members, directors or employees under the Placing Agreement
pursuant to the Contracts (Rights of Third Parties) Act 1999 (as amended) or
otherwise.

 

Shore Capital and Canaccord may waive compliance by the Company with certain
of the Company's obligations in relation to the conditions in the Placing
Agreement. Any such extension or waiver will not affect UK Placees'
commitments as set out in this Announcement.

 

By participating in the UK Placing, each UK Placee agrees that its rights and
obligations hereunder terminate only in the circumstances described below
under "Right to Terminate under the Placing Agreement" and will not be capable
of rescission or termination by the UK Placee.

 

No commissions will be paid to UK Placees or by UK Placees in respect of any
UK Placing Shares.‎

 

Right to Terminate under the Placing Agreement

 

Shore Capital and Canaccord may, at any time before Admission, terminate their
obligations under the Placing Agreement by giving notice to the Company in
certain circumstances, including if they become aware that, inter alia:

1.   any of the warranties in the Placing Agreement was untrue, inaccurate
or misleading, in each case, when given on the date of the Placing Agreement
and/or that any of the warranties has ceased or is likely at Admission to be
untrue, inaccurate or misleading;

2.   any statement contained in this Announcement, or certain of the other
documents delivered in relation to the UK Placing, is or has become untrue,
incorrect or misleading in each case in any respect;

3.   the Company has failed in any material respect to comply with its
‎obligations under the Placing Agreement, MAR, FSMA, the AIM Rules, or the
‎AIM Mining, Oil & Gas Companies Note in respect of the Placing or
‎Admission and which is material in the context of the UK Placing and/or
‎Admission;

4.   a material adverse change in the financial position or prospects of the
‎Group (taken as a whole) has occurred or appears likely to occur; or

5.   any one of a number of force majeure events specified in the Placing
Agreement occurs,

and such events would in the reasonable opinion of Shore Capital and Canaccord
be likely to materially prejudice the outcome of the UK Placing, and that it
is, as a result of such matter, inappropriate to proceed with the UK Placing.

 

By participating in the UK Placing, each UK Placee agrees with Shore Capital
and Canaccord that the exercise by Shore Capital and Canaccord of any right of
termination or any other right or other discretion under the Placing Agreement
shall be within the absolute discretion of Shore Capital and Canaccord and
that Shore Capital and Canaccord need not make any reference to the UK Placees
in this regard and that, to the fullest extent permitted by law, neither Shore
Capital nor Canaccord shall have any liability whatsoever to the UK Placees in
connection with any such exercise.

 

No Admission Document or Prospectus

 

The UK Placing Shares are being offered to a limited number of specifically
invited persons only and have not been nor will be offered in such a way as to
require the publication of an admission document or prospectus in the United
Kingdom or any equivalent document in any other jurisdiction. No offering
document, admission document or prospectus has been or will be submitted to be
approved by the Financial Conduct Authority or the London Stock Exchange in
relation to the UK Placing and no such offering document, admission document
or prospectus is required to be published and commitments made by UK Placees
will be made solely on the basis of the information contained in this
Announcement and any information previously published by or on behalf of the
Company by notification to a Regulatory Information Service ("Publicly
Available Information") (save that in the case of Publicly Available
Information, a UK Placee's right to rely on that information is limited to the
right that such UK Placee would have as a matter of law in the absence of this
paragraph). Each UK Placee, by accepting a participation in the UK Placing,
agrees that the content of this Announcement is exclusively the responsibility
of the Company and confirms to Shore Capital, Canaccord and the Company that
it has neither received nor relied on any other information (other than the
Publicly Available Information), representation, warranty or statement made by
or on behalf of the Company or Shore Capital or Canaccord (other than the
amount of the relevant UK Placing participation in the oral confirmation given
to UK Placees and the trade confirmation referred to below), any of their
Affiliates or any persons acting on their behalf and none of Shore Capital,
Canaccord or the Company nor any of their Affiliates nor any persons acting on
their behalf will be liable for the decision of any UK Placee to participate
in the UK Placing based on any other information, representation, warranty or
statement which the UK Placee may have obtained or received (regardless of
whether or not such information, representation, warranty or statement was
given or made by or on behalf of any such persons), and if given or made,
such information, representation, warranty or statement must not be relied
upon as having been authorised by Shore Capital, Canaccord, the Company or
their respective officers, directors, employees or agents.

 

By participating in the UK Placing, each UK Placee acknowledges to and agrees
with Shore Capital and Canaccord for themselves and as agents for the Company
that, except in relation to the information contained in this Announcement, it
has relied on its own investigation of the business, financial or other
position of the Company in deciding to participate in the UK Placing. Nothing
in this paragraph shall exclude the liability of any person for fraudulent
misrepresentation. None of the Company, Shore Capital or Canaccord are making
any undertaking or warranty to any UK Placee regarding the legality of an
investment in the UK Placing Shares by such UK Placee under any legal,
investment or similar laws or regulations. Each UK Placee should not consider
any information in this Announcement to be legal, tax or business advice. Each
UK Placee should consult its own solicitor, tax adviser and financial adviser
for independent legal, tax and financial advice regarding an investment in the
UK Placing Shares.

 

Registration and Settlement

 

UK Placees will receive their UK Placing Shares (ISIN: CA89156L1085) following
Admission within the system administered by Euroclear UK & Ireland
("CREST"), subject to certain exceptions. Shore Capital and/or Canaccord
reserve the right to require settlement for and delivery of the UK Placing
Shares to UK Placees in certificated form or by such other means that they
deem necessary if delivery or settlement is not possible or practicable within
the CREST system within the timetable set out in this Announcement or would
not be consistent with the regulatory requirements in the UK Placee's
jurisdiction. Each UK Placee will be deemed to agree that it will do all
things necessary to ensure that delivery and payment is completed as directed
by Shore Capital or Canaccord in accordance with the standing CREST settlement
instructions which they have in place with Shore Capital or Canaccord.

 

In order to enable UK Placees to settle their securities through CREST, the
Company has appointed Link Market Services Trustees Limited to act as a
depositary (the "Depositary") to hold the Common Shares and issue
dematerialised depositary interests representing the underlying Common Shares
("Depositary Interests"). The Depositary will hold the Common Shares on trust
for the relevant shareholders and this trust relationship is documented in a
deed poll executed by the Depositary on 22 March 2021 (the "Deed Poll"). The
Deed Poll set(s) out the procedure for holders of Depositary Interests to vote
at general meetings of Touchstone and to exercise other procedural shareholder
rights, which will be transferred to the Depositary with the Common Shares.

 

The Depositary Interests will be independent English securities and will be
held on a register maintained by the Depositary. The Depositary Interests will
have the same security code and ISIN number as the underlying Common Shares
which they represent and will not require a separate admission to AIM.

 

Each UK Placee allocated UK Placing Shares in the UK Placing will be sent a
trade confirmation stating the number of UK Placing Shares allocated to it,
the Placing Price, the aggregate amount owed by such UK Placee to Shore
Capital or Canaccord and settlement instructions.

 

Interest is chargeable daily on payments not received from UK Placees on the
due date in accordance with the arrangements set out above at the rate of two
percentage points above the base rate of Barclays Bank Plc.

 

Each UK Placee is deemed to agree that if it does not comply with these
payment obligations: (i) the Company may release itself (if it decides in its
absolute discretion to do so) and will be released from all obligations it may
have to issue any such UK Placing Shares to such UK Placee or at its direction
which are then unissued; (ii) the Company may exercise all rights of lien,
forfeiture and set-off over and in respect of any such UK Placing Shares to
the fullest extent permitted under its articles of incorporation or otherwise
by law and to the extent that such UK Placee then has any interest in or
rights in respect of any such UK Placing Shares; (iii) the Company, Shore
Capital or Canaccord may sell (and each of them is irrevocably authorised by
such UK Placee to do so) all or any of such UK Placing Shares on such UK
Placee's behalf and then retain from the proceeds, for the account and benefit
of the Company or, where applicable, Shore Capital and/or Canaccord: (a) any
amount up to the total amount due to it as, or in respect of, subscription
monies, or as interest on such monies, for any UK Placing Shares; (b) any
amount required to cover any stamp duty or stamp duty reserve tax (together
with any interest or penalties) arising on the sale of such UK Placing Shares
on such UK Placee's behalf; and (c) any amount required to cover dealing costs
and/or commissions necessarily or reasonably incurred by it in respect of such
sale; and (iv) such UK Placee shall remain liable to the Company and to Shore
Capital and/or Canaccord (as applicable) for the full amount of any losses and
of any costs which it may suffer or incur as a result of it: (a) not receiving
payment in full for such UK Placing Shares by the required time; and/or (b)
the sale of any such UK Placing Shares to any other person at whatever price
and on whatever terms are actually obtained for such sale by or for it. By
communicating a bid for UK Placing Shares, each UK Placee confers on Shore
Capital, Canaccord and the Company such authorities and powers necessary to
carry out any such sale and agrees to ratify and confirm all actions which
Shore Capital, Canaccord and/or the Company lawfully takes in pursuance of
such sale. Legal and/or beneficial title in and to any UK Placing Shares shall
not pass to the relevant UK Placee until it has fully complied with its
obligations hereunder.

 

If UK Placing Shares are to be delivered to a custodian or settlement agent,
the UK Placee should ensure that the trade confirmation is copied and
delivered immediately to the relevant person within that organisation.

 

Insofar as UK Placing Shares are registered in the UK Placee's name or that of
its nominee or in the name of any person for whom the UK Placee is contracting
as agent or that of a nominee for such person, such UK Placing Shares will,
subject as provided below, be so registered free from any liability to stamp
duty or stamp duty reserve tax. If there are any circumstances in which any
other stamp duty or stamp duty reserve tax is payable in respect of the issue
of the UK Placing Shares, none of Shore Capital, Canaccord or the Company
shall be responsible for the payment thereof. UK Placees (or any nominee or
other agent acting on behalf of a UK Placee) will not be entitled to receive
any fee or commission in connection with the UK Placing.

 

It is expected that settlement will be on 14 December 2022 on a delivery
versus payment basis in accordance with the instructions given to the Joint
Bookrunners.

 

Resale Restrictions

 

The certificates representing the UK Placing Shares or the ownership statement
issued under a direct registration system or other electronic book-entry
system shall bear a restrictive legend in the following form (and with the
necessary information inserted) in accordance with applicable Canadian
securities laws and the policies of the TSX indicating that the resale of such
securities is restricted:

 

"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY
MUST NOT TRADE THE SECURITY IN CANADA BEFORE 15 APRIL 2022."

 

"The securities represented by this certificate are listed on the Toronto
Stock Exchange ("TSX"); however, the said securities cannot be traded through
the facilities of TSX since they are not freely transferable, and consequently
any certificate representing such securities is not "good delivery" in
settlement of transactions on TSX."

 

Representations and Warranties

 

By participating in the UK Placing, each UK Placee (and any person acting on
such UK Placee's behalf):

1.   represents and warrants that it has read and understood this
Announcement in its entirety (including this Appendix) and acknowledges that
its participation in the UK Placing will be governed by the terms, conditions,
representations, warranties, acknowledgements, agreements and undertakings as
referred to and included in this Announcement (including this Appendix) and
undertakes not to redistribute or duplicate this Announcement;

2.   acknowledges that no prospectus, admission document or offering
document has been or will be prepared in connection with the UK Placing and
that it has not received and will not receive a prospectus, admission document
or other offering document in connection with the UK Placing or the UK Placing
Shares;

3.   agrees to indemnify on an after-tax basis and hold harmless each of the
Company, Shore Capital, Canaccord their respective Affiliates and any person
acting on their behalf from any and all costs, claims, liabilities and
expenses (including legal fees and expenses) arising out of or in connection
with any breach of the representations, warranties, acknowledgements,
agreements and undertakings in this Announcement and further agrees that the
provisions of this Announcement shall survive after completion of the UK
Placing;

4.   acknowledges that the UK Placing Shares will be admitted to trading on
AIM, and the Company is therefore required to publish certain business and
financial information in accordance with the AIM Rules for Companies, which
includes a description of the nature of the Company's business and the
Company's most recent balance sheet and profit and loss account and the
Company's announcements and circulars published in the past 12 months and the
Company's admission document (collectively, the "Exchange Information"), and
that it is able to obtain or access such information without undue difficulty
and has read and understood the Exchange Information;

5.   acknowledges that its obligations are irrevocable and legally binding
and shall not be capable of rescission or termination by it in any
circumstances;

6.   agrees that it has no rights against Shore Capital, Canaccord or the
Company, or any of their respective officers, directors or employees, under
the Placing Agreement pursuant to the Contracts (Rights of Third Parties Act)
1999;

7.   acknowledges that neither Shore Capital nor Canaccord nor any of their
Affiliates nor any person acting on their behalf has provided, and will not
provide it with, any material or information regarding the UK Placing Shares
or the Company; nor has it requested that Shore Capital, Canaccord or any of
their Affiliates or any person acting on their behalf to provide it with any
such material or information;

8.   acknowledges that the content of this Announcement is exclusively the
responsibility of the Company and that neither Shore Capital nor Canaccord nor
any of their Affiliates nor any person acting on their behalf will be
responsible for or shall have any liability for any information,
representation or statement relating to the Company contained in this
Announcement or any information previously published by or on behalf of the
Company and neither Shore Capital nor Canaccord any of their Affiliates nor
any person acting on their behalf will be liable for any UK Placee's decision
to participate in the UK Placing based on any information, representation or
statement contained in this Announcement or otherwise;

9.   represents, warrants and agrees that the only information on which it
is entitled to rely and on which such UK Placee has relied in committing to
subscribe for the UK Placing Shares is the information contained in this
Announcement and any Exchange Information and any Publicly Available
Information (save that in the case of Exchange Information and Publicly
Available Information, a UK Placee's right to rely on that information is
limited to the right that such UK Placee would have as a matter of law in the
absence of this paragraph), such information being all that it deems necessary
to make an investment decision in respect of the UK Placing Shares and that it
has made its own assessment of, and has not relied on any other information
given, or representation or statement made at any time, by any person
concerning the Company, the UK Placing Shares or the UK Placing. It agrees
that none of the Company, Shore Capital or Canaccord, nor any of their
respective officers, agents, employees or affiliates will have any liability
for any other information or representation. It irrevocably and
unconditionally waives any rights it may have in respect of any other
information or representation and has relied on its own investigation with
respect to, the UK Placing Shares, the UK Placing and the Company in
connection with its decision to subscribe for the UK Placing Shares;

10.  acknowledges that it is not relying on any investigation that Shore
Capital, Canaccord or any of their Affiliates or any person acting on their
behalf may have conducted with respect to the UK Placing Shares or the Company
and no person is authorised in connection with the UK Placing to give any
information or make any representation to it, express or implied, with respect
thereto other than as contained in this Announcement and, if given or made,
any information or representation must not be relied upon as having been
authorised by Shore Capital, Canaccord or the Company;

11.  represents and warrants that it has knowledge and experience in
financial, business and international investment matters as is required to
evaluate the merits and risks of subscribing for the UK Placing Shares. It
further represents and warrants that it is experienced in investing in
securities of this nature and is aware that it may be required to bear, and is
able to bear, the economic risk of, and is able to sustain, a complete loss in
connection with the UK Placing. It also represents and warrants that it has
had sufficient time to consider and has conducted its own investigation with
respect to the offer and subscription for the UK Placing Shares, including the
tax, legal and other economic considerations and has relied upon its own
examination and due diligence of the Company and its affiliates taken as a
whole, and the terms of the UK Placing, including the merits and risks
involved;

12.  represents and warrants that it has neither received nor relied on any
confidential price sensitive information concerning the Company which has not
subsequently been made public in making its investment decision to participate
in the UK Placing and is not purchasing the UK Placing Shares on the basis of
material non-public information or inside information (as defined under the
Market Abuse Regulation (EU 596/2014) as it forms part of the UK law by virtue
of the European Union (Withdrawal) Act 2018 ("MAR") or any price sensitive
information for the purposes of Rule 11 of the AIM Rules for Companies;

13.  agrees that these terms and conditions represent the whole and only
agreement between it, Shore Capital, Canaccord and the Company in relation to
its participation in the UK Placing and supersedes any previous agreement
between any of such parties in relation to such participation. Accordingly,
each UK Placee, in accepting its participation in the UK Placing, acknowledges
that it has not relied on any information which is contained in any research
reports prepared by Shore Capital, Canaccord, any of their Affiliates or any
person acting on their behalf and understands that (i) neither Shore Capital
nor Canaccord, nor any of their Affiliates nor any person acting on their
behalf has or shall have any liability for public information or any
representation; (ii) neither Shore Capital nor Canaccord nor the Company, nor
any of their Affiliates, nor any person acting on their behalf has or shall
have any liability for any additional information that has otherwise been made
available to such UK Placee , whether at the date of publication, the date of
this Announcement or otherwise; and that (iii) none of Shore Capital,
Canaccord or the Company, nor any of their Affiliates, nor any person acting
on their behalf makes any representation or warranty, express or implied, as
to the truth, accuracy or completeness of such information, whether at the
date of publication, the date of this Announcement or otherwise;

14.  represents and warrants that (i) it is entitled to acquire the UK
Placing Shares under the laws and regulations of all relevant jurisdictions
which apply to it; (ii) it has fully observed such laws and regulations and
obtained all such governmental and other guarantees and other consents and
authorities which may be required thereunder and complied with all necessary
formalities; (iii) it has all necessary capacity and authority, and is
entitled, to commit to participation in the UK Placing and to perform its
obligations in relation thereto and will honour such obligations, and to make
the representations and agreements contained on this Appendix; (iv) it has
paid any issue, transfer or other taxes due in connection with its
participation in the UK Placing in any territory; and (v) it has not taken any
action which will or may result in the Company, Shore Capital, Canaccord, any
of their respective Affiliates or any person acting on their behalf being in
breach of the legal and/or regulatory requirements of any territory in
connection with the UK Placing;

15.  acknowledges that a communication that the UK Placing or the book is
"covered" (i.e., indicated demand from investors in the book equals or exceeds
the amount of the securities being offered) is not any indication or assurance
that the book will remain covered or that the UK Placing and securities will
be fully distributed by Shore Capital and Canaccord. Each Joint Bookrunner
reserves the right to take up a portion of the securities in the UK Placing as
a principal position at any stage at its sole discretion, among other things,
to take account of the Company's objectives and/or its allocation policies;

16.  represents and warrants that it understands that: (i) the UK Placing
Shares have not been and will not be registered under the US Securities Act or
with any state or other jurisdiction of the United States, nor approved or
disapproved by the US Securities and Exchange Commission, any state securities
commission in the United States or any other United States regulatory
authority; and (ii) it will not offer, sell or deliver, directly or
indirectly, any UK Placing Shares in or into the United States other than
pursuant to an effective registration under the US Securities Act or in a
transaction exempt from, or not subject to, the registration requirements
thereunder and in compliance with any applicable securities laws of any state
or other jurisdiction of the United States and may only be acquired in
"offshore transactions" as defined in and pursuant to Regulation S under the
US Securities Act or in transactions exempt from or not subject to the
registration requirements of the US Securities Act;

17.  represents and warrants that its acquisition of the UK Placing Shares
has been or will be made in an "offshore transaction" as defined in and
pursuant to Regulation S under the US Securities Act;

18.  represents and warrants that it will not offer or sell, directly or
indirectly, any of the UK Placing Shares in the United States except in
accordance with Regulation S or pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the US Securities
Act;

19.  represents and warrants that it will observe the resale restrictions set
out in further detail in the section entitled "Resale Restrictions" above in
this Appendix;

20.  represents and warrants that it is subscribing for the UK Placing Shares
for investment purposes, and not with a view to offer, resell, or distribute
within the meaning of US securities law;

21.  represents and warrants that it understands that the Company is relying
on an exemption from the requirements to provide it with a prospectus and to
sell the UK Placing Shares through a person or company registered to sell
securities under the Securities Act, RSA 2000. C S-4 (the "Alberta Securities
Act") and, as a consequence of acquiring UK Placing Shares pursuant to this
exemption, certain protections, rights and remedies provided under the Alberta
Securities Act, including statutory rights of rescission or damages, will not
be available to it;

22.  represents and warrants that if it is a financial intermediary, as that
term is used in Article 5(1) of the UK Prospectus Regulation, that the UK
Placing Shares subscribed for by it in the UK Placing will not be subscribed
for on a non-discretionary basis on behalf of, nor will they be subscribed for
with a view to their offer or resale to, persons in a member state of the EEA
other than EU Qualified Investors or the United Kingdom other than UK
Qualified Persons, or in circumstances in which the prior consent of the Joint
Bookrunners has been given to the proposed offer or resales;

23.  represents and warrants that it has not offered or sold and will not
offer or sell any UK Placing Shares to the public in the United Kingdom or any
member state of the European Economic Area except in circumstances falling
within Article 1(4) of the UK Prospectus Regulation which do not result in any
requirement for the publication of a prospectus pursuant to Article 3 of the
UK Prospectus Regulation;

24.  represents and warrants that it has only communicated or caused to be
communicated and will only communicate or cause to be communicated any
invitation or inducement to engage in investment activity (within the meaning
of section 21 of FSMA) relating to the UK Placing Shares in circumstances in
which it is permitted to do so pursuant to section 21 of FSMA and it
acknowledges and agrees that this Announcement has not been approved by either
Shore Capital or Canaccord in their capacities as authorised persons under
section 21 of FSMA and it may not therefore be subject to the controls which
would apply if it was made or approved as financial promotion by an authorised
person;

25.  represents and warrants that it is aware of and has complied and will
comply with all applicable provisions of FSMA with respect to anything done by
it in relation to the UK Placing Shares in, from, or otherwise involving the
United Kingdom;

26.  if in the United Kingdom, unless otherwise agreed by the Joint
Bookrunners, it is a "professional client" or an "eligible counterparty"
within the meaning of Chapter 3 of the FCA's Conduct of Business Sourcebook
and it is purchasing UK Placing Shares for investment only and not with a view
to resale or distribution;

27.  represents and warrants that it is aware of and has complied with its
obligations in connection with money laundering and terrorist financing under
the Criminal Justice Act 1993, MAR, the Proceeds of Crime Act 2002 (as
amended), the Terrorism Act 2000, the Terrorism Act 2006, the Anti-terrorism
Crime and Security Act 2001, the Money Laundering, Terrorist Financing and
Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) and
related or similar rules, regulations or guidelines, issued, administered or
enforced by any government agency having jurisdiction in respect thereof (the
"Regulations") and the Money Laundering Sourcebook of the FCA and, if it is
making payment on behalf of a third party, that satisfactory evidence has been
obtained and recorded by it to verify the identity of the third party as
required by the Regulations;

28.  if in the United Kingdom, represents and warrants that it is a person
falling within (a) Article 19(5) of the Order or (b) a person falling within
Article 49(2)(a) to (d) of the Order and undertakes that it will acquire,
hold, manage and dispose of any UK Placing Shares that are allocated to it for
the purposes of its business;

29.  if in the United Kingdom, represents and warrants that it is a qualified
investor as defined in Article 2(e) of the UK Prospectus Regulation, acting as
principal or in circumstances to which section 86(2) of FSMA applies;

30.  represents and warrants that its participation in the UK Placing is not
being made pursuant to an agreement or understanding (whether formal or
informal) with another person or persons or to obtain or consolidate control
of the Company (as further defined in the City Code on Takeovers and Mergers
and in the Canadian National Instrument 62-104 - Take-Over Bids and Issuer
Bids);

31.  undertakes that it (and any person acting on its behalf) will pay for
the UK Placing Shares acquired by it in accordance with this Announcement on
the due time and date set out in this Announcement or any trade confirmation
issued pursuant to this Announcement against delivery of such UK Placing
Shares to it, failing which the relevant UK Placing Shares may be placed with
other UK Placees or sold as Shore Capital, Canaccord or the Company may, in
their absolute discretion, determine and it will remain liable for any
shortfall below the net proceeds of such sale and the placing proceeds of such
UK Placing Shares and may be required to bear any costs, commissions, stamp
duty or stamp duty reserve tax (together with any interest or penalties due
pursuant to the terms set out or referred to in this Announcement) which may
arise upon the sale of such UK Placee's UK Placing Shares on its behalf;

32.  if it has received any confidential price sensitive information about
the Company in advance of the UK Placing (including inside information as
defined under MAR and price sensitive information under Rule 11 of the AIM
Rules for Companies), it warrants that it has received such information within
the marketing soundings regime provided for in article 11 of MAR and
associated delegated regulations and has not: (a) dealt in the securities of
the Company; (b) encouraged or required another person to deal in the
securities of the Company; or (c) disclosed such information to any person,
prior to the information being made publicly available;

33.  acknowledges that none of Shore Capital, Canaccord nor the Company, nor
any of their Affiliates nor any person acting on their behalf is making any
recommendations to it or advising it regarding the suitability or merits of
any transaction it may enter into in connection with the UK Placing, and
acknowledges that none of Shore Capital, Canaccord nor the Company, nor any of
their Affiliates nor any person acting on their behalf has any duties or
responsibilities to it for providing advice in relation to the UK Placing or
in respect of any representations, warranties, undertakings or indemnities
contained in the Placing Agreement or for the exercise or performance of any
of Shore Capital's, Canaccord's or the Company's rights and obligations
thereunder, including any right to waive or vary any condition or exercise any
termination right contained therein;

34.  undertakes that (i) the person whom it specifies for registration as
holder of the UK Placing Shares will be (a) the UK Placee or (b) the UK
Placee's nominee, as the case may be, (ii) none of Shore Capital, Canaccord
nor the Company will be responsible for any liability to stamp duty or stamp
duty reserve tax resulting from a failure to observe this requirement and
(iii) the UK Placee and any person acting on its behalf agrees to acquire the
UK Placing Shares on the basis that the UK Placing Shares will be issued to
the CREST stock account of Shore Capital or Canaccord which will hold them as
settlement agent as nominee for the UK Placee until settlement in accordance
with its standing settlement instructions with payment for the UK Placing
Shares being made simultaneously upon receipt of the UK Placing Shares in the
UK Placee's stock account on a delivery versus payment basis;

35.  acknowledges that any agreements entered into by it pursuant to these
terms and conditions, and any non-contractual obligations arising out of or in
connection with such agreements, shall be governed by and construed in
accordance with the laws of England and Wales and it submits (on behalf of
itself and on behalf of any person on whose behalf it is acting) to the
exclusive jurisdiction of the courts of England and Wales as regards any
claim, dispute or matter arising out of any such contract;

36.  acknowledges that it irrevocably appoints any director of Shore Capital
or Canaccord as its agent for the purposes of executing and delivering to the
Company and/or its registrars any documents on its behalf necessary to enable
it to be registered as the holder of any of the UK Placing Shares agreed to be
taken up by it under the UK Placing;

37.  represents and warrants that (unless otherwise agreed with Shore Capital
and Canaccord) it is not , and any person who it is acting on behalf of is
not, and at the time the UK Placing Shares are subscribed will not be, a
resident of any Restricted Jurisdiction and acknowledges and agrees that the
UK Placing Shares have not been and will not be registered nor will a
prospectus be cleared in respect of the UK Placing Shares under the securities
legislation of any Restricted Jurisdiction and, subject to certain exceptions,
the UK Placing Shares may not be offered, sold, taken up, renounced, delivered
or transferred, directly or indirectly, within any Restricted Jurisdiction;

38.  represents and warrants that any person who confirms to Shore Capital or
Canaccord on behalf of a UK Placee an agreement to subscribe for UK Placing
Shares and/or who authorises Shore Capital and Canaccord to notify the UK
Placee's name to the Company's registrar, has authority to do so on behalf of
the UK Placee;

39.  acknowledges that the agreement to settle each UK Placee's allocation of
UK Placing Shares (and/or the allocation of a person for whom it is
contracting as agent) free of stamp duty and stamp duty reserve tax depends on
the settlement relating only to an acquisition by it and/or such person direct
from the Company of the UK Placing Shares in question. Such agreement assumes
that the UK Placing Shares are not being acquired in connection with
arrangements to issue depositary receipts or to issue or transfer the UK
Placing Shares into a clearance service. If there were any such arrangements,
or the settlement related to other dealing in the UK Placing Shares, stamp
duty or stamp duty reserve tax may be payable, for which none of the Company,
Shore Capital nor Canaccord will be responsible. If this is the case, the UK
Placee should take its own advice and notify Shore Capital or Canaccord
accordingly;

40.  represents and warrants that it, or the person specified by it for
registration as a holder of the UK Placing Shares, will be liable for any
stamp duty and all other stamp, issue, securities, transfer, registration,
documentary or other duties or taxes (including any interest, fines or
penalties relating thereto), if any, payable on acquisition of any of the UK
Placing Shares or the agreement to subscribe for the UK Placing Shares and
acknowledges and agrees that none of Shore Capital, Canaccord, the Company,
any of their respective Affiliates or any person acting on behalf of them will
be responsible for any liability to stamp duty or stamp duty reserve tax
resulting from a failure to observe this requirement. Each UK Placee and any
person acting on behalf of such UK Placee agrees to participate in the UK
Placing, and agrees to indemnify the Company, Shore Capital and Canaccord on
an after-tax basis in respect of the same, on the basis that the UK Placing
Shares will be allotted to the CREST stock account of Shore Capital or
Canaccord who will hold them as nominee on behalf of such UK Placee until
settlement in accordance with its standing settlement instructions;

41.  represents and warrants that it will not make any offer to the public of
those UK Placing Shares to be subscribed for by it for the purposes of the
Prospectus Regulation Rules made by the FCA pursuant to Prospectus Regulation
Rules Instrument 2019 (FCA 2019/80);

42.  represents and warrants it will not distribute any document relating to
the UK Placing Shares and it will be acquiring the UK Placing Shares for its
own account as principal or for a discretionary account or accounts (as to
which it has the authority to make the statements set out herein) for
investment purposes only and it does not have any contract, understanding or
arrangement with any person to sell, pledge, transfer or grant a participation
therein to such person or any third person with respect of any UK Placing
Shares; save that if it is a private client stockbroker or fund manager it
confirms that in purchasing the UK Placing Shares it is acting under the terms
of one or more discretionary mandates granted to it by private clients and it
is not acting on an execution only basis or under specific instructions to
purchase the UK Placing Shares for the account of any third party;

43.  acknowledges that the UK Placing Shares will be issued subject to the
terms and conditions set out in this Announcement (including this Appendix);

44.  acknowledges that when a UK Placee or any person acting on behalf of the
UK Placee is dealing with Shore Capital or Canaccord, any money held in an
account with Shore Capital or Canaccord on behalf of the UK Placee and/or any
person acting on behalf of the UK Placee will not be treated as client money
within the meaning of the relevant rules and regulations of the FCA. The UK
Placee acknowledges that the money will not be subject to the protections
conferred by the client money rules; as a consequence, this money will not be
segregated from Shore Capital's nor Canaccord's money in accordance with the
client money rules and will be used by Shore Capital and Canaccord in the
course of their businesses; and the UK Placee will rank only as a general
creditor of Shore Capital or Canaccord (as the case may be);

45.  acknowledges and understands that the Company, Shore Capital, Canaccord
and others will rely upon the truth and accuracy of the foregoing
representations, warranties, agreements, undertakings and acknowledgements;

46.  acknowledges that no prospectus, admission document or other offering
document has been or will be prepared in connection with the UK Placing and it
has not received and will not receive a prospectus, admission document or
other offering document in connection with the Placing or the UK Placing
Shares;

47.  acknowledges that time is of the essence as regard its obligations in
respect of its participation in the UK Placing under these terms and
conditions;

48.  acknowledges that the basis of allocation will be determined by Shore
Capital and Canaccord at their absolute discretion in consultation with the
Company. The right is reserved to reject in whole or in part and/or scale back
any participation in the UK Placing;

49.  irrevocably authorises the Company, Shore Capital and Canaccord to
produce this Announcement pursuant to, in connection with, or as maybe
required by any applicable law or regulation, administrative or legal
proceeding or official inquiry with respect to the matters set forth in this
Announcement; and

50.  acknowledges that its commitment to subscribe for UK Placing Shares on
the terms set out in this Announcement will continue notwithstanding any
amendment that may in future be made to the terms of the UK Placing and that
UK Placees will have no right to be consulted or require that their consent be
obtained with respect to the Company's conduct of the UK Placing.

The acknowledgements, agreements, undertakings, representations and warranties
referred to above are given to each of the Company, Shore Capital and
Canaccord (for their own benefit and, where relevant, the benefit of their
respective Affiliates and any person acting on their behalf) and are
irrevocable. The provisions of this Appendix may be waived, varied or modified
as regards specific UK Placees or on a general basis by Shore Capital,
Canaccord and/or the Company.

 

No claim shall be made against the Company, Shore Capital, Canaccord or any of
their respective Affiliates or any other person acting on behalf of any of
such persons by a UK Placee to recover any damage, cost, charge or expense
which it may suffer or incur by reason of or arising from the carrying out by
it of the work to be done by it pursuant to this Announcement or the
performance of its obligations pursuant to this Announcement or otherwise in
connection with the UK Placing.

 

No UK stamp duty or stamp duty reserve tax should be payable to the extent
that the UK Placing Shares are issued or transferred (as the case may be) into
CREST to, or to the nominee of, a UK Placee who holds those shares
beneficially (and not as agent or nominee for any other person) within the
CREST system and registered in the name of such UK Placee or such UK Placee's
nominee.

 

Any arrangements to issue or transfer the UK Placing Shares into a depositary
receipts system or a clearance service or to hold the UK Placing Shares as
agent or nominee of a person to whom a depositary receipt may be issued or who
will hold the UK Placing Shares in a clearance service, or any arrangements
subsequently to transfer the UK Placing Shares, may give rise to stamp duty
and/or stamp duty reserve tax, for which neither the Company nor Shore Capital
nor Canaccord will be responsible and the UK Placee to whom (or on behalf of
whom, or in respect of the person for whom it is participating in the UK
Placing as an agent or nominee) the allocation, allotment, issue or delivery
of UK Placing Shares has given rise to such stamp duty or stamp duty reserve
tax undertakes to pay such stamp duty or stamp duty reserve tax forthwith and
to indemnify on an after-tax basis and to hold harmless the Company, Shore
Capital and Canaccord in the event that the Company or Shore Capital incurs
any such liability to stamp duty or stamp duty reserve tax.

 

In addition, UK Placees should note that they will be liable for any capital
duty, stamp duty and all other stamp, issue, securities, transfer,
registration, documentary or other duties or taxes (including any interest,
fines or penalties relating thereto) payable outside the UK by them or any
other person on the acquisition by them of any UK Placing Shares or the
agreement by them to acquire any UK Placing Shares.

 

All times and dates in this Announcement may be subject to amendment. Shore
Capital or Canaccord will notify the UK Placees and any person acting on
behalf of the UK Placees of any such changes.

 

This Announcement has been issued by the Company and is the sole
responsibility of the Company. Each UK Placee, and any person acting on
behalf of the UK Placee, acknowledges that neither Shore Capital nor Canaccord
owe any fiduciary or other duties to any UK Placee in respect of any
representations, warranties, undertakings or indemnities in the Placing
Agreement. Each UK Placee and any person acting on behalf of the UK Placee
acknowledges and agrees that Shore Capital or Canaccord, or any of their
Affiliates may, at their absolute discretion, agree to become a UK Placee in
respect of some or all of the UK Placing Shares.

 

The rights and remedies of Shore Capital, Canaccord and the Company under
these terms and conditions are in addition to any rights and remedies which
would otherwise be available to each of them and the exercise or partial
exercise or partial exercise of one will not prevent the exercise of others.

 

Each UK Placee may be asked to disclose in writing or orally to Shore Capital
or Canaccord:

(a) if he is an individual, his nationality; or

(b) if he is a discretionary fund manager, the jurisdiction in which the funds
are managed or owned.

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