Atlantic Coal PLC SEDA advance and equity agreement (4203U)

TIDMATC

RNS Number : 4203U

Atlantic Coal PLC

02 December 2013

Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining

Atlantic Coal plc ("Atlantic Coal" or the "Company")

SEDA advance and equity swap agreement, primarily to finance export orders to China

Atlantic Coal, the AIM listed anthracite coal mining company operating in Pennsylvania, USA, announces

That it has made a further draw down on its existing standby equity distribution agreement and has entered into an equity swap arrangement (SEDA). The combined effect of these two actions provides the company with additional funds of GBP800,000 before charges immediately and a further GBP650,000, adjusted as described below, in the period to 31 December 2014. A significant proportion of these funds will be used to increase stocks of anthracite at the Stockton mine in order to satisfy bulk orders from China resulting from sale agreements previously announced.

Under the terms of the SEDA with YA Global Master SPV Ltd ("Yorkville") details of which were announced on 25 July 2013, Atlantic Coal has issued a further 689,491,203 new ordinary shares of 0.07 pence each in the Company ("New Shares") to Yorkville for an aggregate consideration of GBP1,450,000 before charges. Application has been made to admit the New Shares to trading on AIM which is anticipated to take place on or around 6 December 2013.

In addition the Company has entered into an equity swap agreement with Yorkville in respect of 618,164,527of the shares issued above ("the Swap Shares"). This enables the Company to retain much of the economic interest in the Swap Shares over the swap period. Under the swap arrangement Atlantic Coal pays Yorkville GBP650,000 which is repaid in monthly instalments over ten months commencing on 1 February 2014. The payments are GBP65,000.00 per month adjusted as follows:

At each settlement date a market price for the shares is established by taking the average of the lowest ten VWAPs in the month.

The market price is compared to a benchmark price of 0.23 pence per share. If the market price of the shares is less than the benchmark price of the shares then 100% of the difference in value on 10% of the swap shares is deducted from that month's payment. If the market price is greater than the benchmark price then 50% of the increased value of 10% of the Swap Shares is added to that month's repayment. If the market price is greater than 0.4 pence per share then an additional 25% of the increase in the value of 10% of the Swap Shares over 0.4 pence is also added to that month's repayment.

Following the issue of the New Shares the Company's issued share capital will be 4,662,538,505 ordinary shares with voting rights. The Company does not hold any ordinary shares in treasury. Therefore the total number of ordinary shares in the Company with voting rights will be 4,662,538,505.

The above figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Atlantic Coal's managing director, Steve Best, said "I am delighted that Yorkville are demonstrating their confidence in the Company's management and the steps that we are taking to develop our business".

**ENDS**

For further information on the Company, visit: www.atlanticcoal.com or contact:

 
 Steve Best         Atlantic Coal plc           Tel: [phone] 
 Nick Naylor        Allenby Capital Limited     Tel: [phone] 
 Alex Price         Allenby Capital Limited     Tel: [phone] 
 Elisabeth Cowell   St Brides Media & Finance   Tel: [phone] 
                     Ltd 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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