Element and ABO agree to grace period for Tranche 3

08.11.18 | Press releases

Oslo, Norway 8 November 2018 - Element ASA ('Element') and Alpha Blue Ocean, Through European High Growth Opportunities Securitization Fund ('ABO') have agreed to a grace period whereby ABO may not call tranche 3 of the 500 MNOK facility until 31 January 2019, unless the share price of the Element share exceeds nok 4.

"We are very pleased with the proactive attitude shown by ABO to accommodate our request to impose a close to three-month grace period for its call option on Tranche 3. ABO yet again shows that they consider the interests of Element and its shareholders." says Lars Beitnes, Chairman in Element.

Element and ABO have entered into a new side letter to the MNOK 500 Convertible Loan Facility with Warrants approved by the EGM on 6 June 2018, preventing ABO from using its call option for the third MNOK 50 tranche with warrants until 31 January 2019 (included), i.e. 1 February 2019, unless the closing share price of the Element share exceeds NOK 4 before such date. On 6 November 2019, ABO has completed the conversion of Tranche 2, as announced, and could have called Tranche 3 at any time at its discretion. The parties have in October 2018 agreed that ABO and its affiliates shall be restricted on its selling volume to a maximum of 10% of the total daily volume per day for a period until and including 27 February 2019, as long as the closing share price is below NOK 4.50 per share, it being specified that such restriction shall not apply to transactions which shall qualify as block trades (nw: en ordre av stort omfang) as defined in article 7, subsection 1 of chapter II of Norwegian securities trading regulation implementing delegated regulations pursuant to MiFID II and MiFIR of December 20, 2017. 

"We appreciate the continuous dialogue and flexible attitude shown by ABO on several occasions during our 14-month cooperation. The grace period provides the market with certainty that additional conversions will not take place for the defined period which means that the market may adjust without the impact of further share issues upon conversion during the grace period, As we have previously emphasised, ABO is incentivised to contribute to an increased share price through the warrant pricing mechanisms, unlike many other convertible facilities used by other market participants. " says Cecilie Grue, CEO in Element. 

For further information, please contact:

Cecilie Grue Chief
Executive Officer
Telephone: +47 991 62 486
E-mail: cg@elementasa.com

Lars Beitnes
Telephone: +356 7996 1497
E-mail: lcb@elementasa.com

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.