Brief: Element: Termination Of ABO Facility

Univid ASA

10/12/2019 10:07

Dec 10 (Reuters) - Element ASA  ELEM.OL :
    * ELEMENT ASA: TERMINATION OF ABO FACILITY
    * ELEMENT ASA - HAS ENTERED INTO A SETTLEMENT AND
TERMINATION
AGREEMENT WITH EUROPEAN HIGH GROWTH OPPORTUNITIES SECURITIZATION
FUND (EHGO) AND ALPHA BLUE OCEAN INC. (ABO)
    * ELEMENT ASA - AGREEMENT PROVIDES FULL CONTROL AND
FLEXIBILITY
FOR ANY FUTURE FUNDING INITIATIVES AND WILL ACCELERATE
IMPLEMENTATION OF INVESTMENT STRATEGY
    * ELEMENT ASA - ELEMENT WILL NOW CONTINUE PROCESS OF
RESTRUCTURE
AND DIVESTING REMAINING MINING ASSETS AND IMPLEMENT NEW DIGITAL
STRATEGY
    * ELEMENT ASA - AS PART OF AGREEMENT, ELEMENT HAS AGREED TO
PAY A
LUMP SUM TERMINATION FEE OF NOK 2.6 MILLION AS FINAL SETTLEMENT
FOR TERMINATION OF AGREEMENTS.
    * ELEMENT ASA - ELEMENT HAS TODAY SIGNED AN AGREEMENT TO
TERMINATE
BOTH ISSUANCE AGREEMENT AND SHARE LENDING AGREEMENT
    * ELEMENT ASA -  AGREEMENT IMPLIES THAT ELEMENT CAN NO
LONGER MAKE
DRAWDOWNS ON ITS NOK 500 MILLION CONVERTIBLE NOTE FACILITY AND
THAT ABO WILL RE-DELIVER 180,800 SHARES IN ELEMENT WHICH ABO
PREVIOUSLY HAD BORROWED, TO COMPANY
    * ELEMENT ASA - FURTHER, EHGO WILL NO LONGER BE ENTITLED TO
REQUIRE THAT COMPANY ISSUES NEW CONVERTIBLE NOTES IN AMOUNT OF
UP TO NOK 25 MILLION
    * ELEMENT ASA - ALL SHARES AND WARRANTS IN ELEMENT HELD BY
EHGO
AND/OR ABO WILL REMAIN OWNED BY THEM AND MAY BE DISPOSED OF AS
EHGO AND ABO SEE FIT.

Source text for Eikon:  ID:nObig5YHDa 
Further company coverage:  ELEM.OL 

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