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06:00 London, 08:00 Helsinki, 29 May 2020 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
AFARAK GROUP PLC HAS TERMINATED SHARE-EXCHANGE AGREEMENT AND RESOLVED ON A DIRECTED SHARE ISSUE
Stock Exchange Release
On 29 May 2019, Afarak released information on two directed share issues. These share issues were related to two signed agreements whereby Afarak acquires additional ownership in certain South African mining assets.
Now due to changed circumstances the other one of the above-mentioned transactions that was to be done through a share exchange has been terminated.
Simultaneously Afarak has resolved on a direct share issue without consideration (“Share Issue”) of total of 2,123,343 Afarak’s treasury shares to its South African subsidiary Chromex Mining Company (Pty) Ltd (“Chromex SA”) in order to enable ownership arrangement in Chromex SA that will result in additional ownership of mining assets in South Africa. This will benefit the Company as the Group's parent company. Thus, from the Company’s point of view especially weighty financial reasons exists for the deviation from the shareholders’ pre-emptive right.
The Share Issue take place in accordance with the decisions of the Afarak Board of Directors, on the basis of the authorization given by the Annual General Meeting of Afarak on 25 June 2019.
Due to the relevantly modest size of the transaction and the fact that the Company is increasing its ownership in assets that it already controls, the Company is not expecting the transaction to affect the financial performance of the Group in 2020.
Helsinki, May 29, 2020
AFARAK GROUP PLC
Board of Directors
For additional information, please contact:
Afarak Group Plc
Guy Konsbruck, CEO, +356 2122 1566, email@example.com
Financial reports and other investor information are available on the Company's website: www.afarak.com.
Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).
London Stock Exchange