OSLO, NORWAY 22 FEBRUARY 2019 – ELEMENT ASA (ELEMENT, OSE:ELE) AND EUROPEAN HIGH
GROWTH OPPORTUNITIES SECURITIZATION FUND MANAGED BY ALPHA BLUE OCEAN INC. (ABO)
HAS AGREED TO AMEND TRANCHE 3 UNDER THE CONVERTIBLE NOTE FACILITY, SPLITTING THE
TRANCHE INTO ONE MNOK 20 SUB-TRANCHE AND SEVERAL SUB-TRANCHES.
Element and ABO have agreed to amend the third tranche of the Convertible Note
Facility splitting tranche 3 into a minimum of 3 sub-tranches and maximum 7
sub-tranches. The first sub-tranche will be in the amount of MNOK 20, the
subsequent tranches will be in the amount of MNOK 5-15. The remaining
sub-tranches may be called by Element or ABO subject to a 20 trading day cool
down period. The total principal amount of the sub-tranches shall not in any
event exceed NOK 50,000,000 which equals to the current amount of tranche 3. The
parties have further agreed that upon settlement of the first new sub-tranche
Element will pay to ABO the remaining part (1/3) of the commitment fee agreed
under the Convertible Note Facility and in any event no later than 22 March
The amendments to tranche 3 require approval by the shareholders of Element.
Notice of an extraordinary general meeting on 18 March 2019 (EGM) will be given
on Monday 25 February 2019. The first sub-tranche will be drawn at the EGM.
"We are pleased to have reached a solution with ABO, which ensures improved
funding for Element. Under the prevailing market conditions and taking in to
account Element's investment and development plans, we view this agreement to be
in the best interest of the company and our shareholders. We appreciate the
flexibility shown by ABO to adjust to Elements current requirements, " says
Cecilie Grue, CEO of Element ASA.
For further information, please contact:
Chief Executive Officer
ABOUT ELEMENT / www.elementasa.com
Element is an innovative project investment company within the mineral sector,
which continuously strives to create shareholder value at the lowest possible
risk. The company has as strategy to identify undervalued projects, closing in
on cash flow, where infrastructure and other basic work, if necessary, have in
large, been completed. The company's special focus is linked to projects within
new, and usually ground-breaking technology, within its niches.
This information is subject to disclosure requirements pursuant to section 5-12
of the Norwegian Securities Trading Act.