Disclosure of shares and rights to shares in Element ASA ("Element") (flagging)

11.12.19 | Press releases

Reference is made to the announcements disclosed on 10 June 2018 and 22 February 2019 and the details provided therein. Reference is further made to the announcement made on 10 December 2019 regarding the cancellation of the facility agreement with Element.

European High Growth Opportunities Securitization Fund represented by European High Growth Opportunities Securitization Fund Manco SA ("EHGO") has on 10 December 2019 sold 18o,ooo shares in Element and re-delivered 180,800 shares borrowed shares.

Following the transaction EHGO holds (i) 2,722,538 shares in Element (including 106,700 shares which are borrowed, refer to the below, as well as 2,608,551 non-tradable shares on separate ISIN pending approval of prospectus), equal to 14.50% of the registered share capital (the Share Capital”), (ii) 100,000 convertible notes convertible to 27,027 shares in Element (as at today's conversion price, but adjustable if the conversion price is adjusted at the time of conversion), equal to 0.14% of the Share Capital and (iii) 1,706,637 warrants giving the right to 1,706,637 shares in Element, equal to 9.09% of the Share Capital.

Furthermore, EHGO has an obligation to redeliver 106,700 borrowed shares in Element pursuant to loan agreement with Legacy Hill Resources Ltd, as disclosed on 18 March 2019.

EHGO's total holding of shares and rights to shares (through convertible notes and warrants to shares) will make up 4,456,202 shares and votes, equal to 23.73% of the Share Capital. EHGO is a fund managed by Alpha Blue Ocean Inc. (“ABO”). ABO owns 309,368 warrants in Element giving the right to 309,368 New Shares in Element, equal to 1.65% of the Share Capital.

ABO's total holding of shares and rights to shares (based on convertible notes, warrants and borrowed shares) on a consolidated basis, make up 4,765,570 shares and votes, equal to 25.38% of the Share Capital.

The disclosure regulation (flaggereglene) requires that the disclosure thresholds regarding rights to shares (i.e. notes and warrants) are calculated on the basis of the share capital of the issuer at the time of disclosure and do not give the correct view taking into account the situation at the time of conversion/exercise of rights to shares. On a fully diluted basis, taking into account all share issuances pursuant to convertible bonds and warrants, ABO’s consolidated holding of shares and rights to shares will amount to 24.60% of the Share Capital of Element.

About Alpha Blue Ocean Inc
Alpha Blue Ocean Inc. is an international business company incorporated under the laws of the Republic of Seychelles, represented by Mr. Pierre Vannineuse. Mr. Pierre Vannineuse is the sole shareholder. Alpha Blue Ocean Inc. is a member of the Blue Ocean Investment Group. Alpha Blue Ocean Inc. was created by Pierre Vannineuse and manages an asset portfolio of around 300 million dollars. Alpha Blue Ocean specializes in providing flexible, innovating and non-invasive debt and capital financing arrangements to listed companies throughout the world and in various sectors such as healthcare, energy, mining and high tech. Alpha Blue Ocean Inc. has offices in London and Geneva.