Starvest PLC Financing Update (8780E)

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RNS Number : 8780E

Starvest PLC

11 May 2017

11 May 2017

Starvest Plc ("Starvest" or "the Company")

Financing Update

Starvest PLC (LON:SVE), the London Stock Exchange AIM listed specialist mining and resources investment business is pleased to advise that it has raised GBP170,000 through a placing and subscription in the company.

Highlights

-- Placing and Subscription of 8,500,000 new ordinary shares of 1.0 pence each ("Ordinary Shares") in the capital of Starvest at a subscription price of 2.0p per Ordinary Share, raising gross proceeds of GBP170,000 (the "Placing");

-- Placing and subscription undertaken at the closing bid price of the Company as at 10 May 2017;

-- Issue of 8,500,000 warrants to subscribe for 8,500,000 new Ordinary Shares in Starvest at an exercise price of 4.0p per warrant, within a 24 month exercise period;

-- Net proceeds of the Placing will be primarily used to expand the Company's specialist mining and resources investment portfolio.

Callum Baxter, Chairman and CEO, commented: 'We are pleased to announce this successful fundraising which will be used to expand our investment portfolio. Current market valuations remain very attractive and we are seeing many good investment opportunities. Positioning early in the market recovery phase is very important and the funds raised will allow us to take advantage of the modest valuations available now.

The board has participated in the fundraising along with existing and new shareholders. On behalf of the board I thank existing shareholders for their continued support, and I warmly welcome the new shareholders of Starvest PLC.'

Placing and Subscription Summary

Starvest has agreed a placing and subscription to raise GBP170,000 of gross proceeds through the issue of 8,500,000 Ordinary Shares in the Company at a price of 2.0p per share (the "Placing Shares").

Each Placing Share issued has an accompanying unlisted and non-transferable warrant to subscribe for an additional Starvest new Ordinary Share at a price of 4.0p at any time within 24 months of admission to trading of the Placing Shares (a total of 8,500,000 warrants). Should all of these warrants be exercised, a further GBP340,000 will be raised for the Company at a price of 4.0p.

Related party transaction

The board has participated in the Placing. Callum Baxter, Chairman and CEO, increases his holding in the Company by 720,000 shares and now holds a total of 3,235,872 shares representing 6.2% of the enlarged capital of the Company following admission of the placing shares. Gemma Cryan, Non-Executive Director, increases her holding in the Company by 500,000 shares and now holds a total of 575,000 shares representing 1.1% of the enlarged capital of the Company following admission of the placing shares.

The participation in the Placing of Callum Baxter and Gemma Cryan falls to be treated as a related party transaction under AIM Rule 13. The independent director, John Watkins, Finance Director, having consulted with Grant Thornton UK LLP (the Company's nominated adviser), confirms that he is satisfied that the terms of Callum Baxter and Gemma Cryan's participation in the Placing are fair and reasonable insofar as the Company's shareholders are concerned.

The 8,500,000 placing shares are expected to be admitted to trading on, or around, 17 May 2017. For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules ("DTRs"), the issued ordinary share capital of Starvest following the issue and allotment of the Placing Shares comprises 52,143,446 Ordinary Shares with voting rights attached (one vote per share). There are no shares held in treasury. This total figure of 52,143,446 may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in Starvest under the DTRs.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Callum N Baxter

Chairman & Chief Executive

11 May 2017

Enquiries to:

Starvest PLC

Callum Baxter Chairman/CEO 07922 255 933 [e-mail]

John Watkins Finance Director 07768 512 404 [e-mail]

Grant Thornton UK LLP (Nomad)

Colin Aaronson or Harrison Clarke 02073 835 100

SI Capital Ltd (Appointed Broker)

Nick Emerson or Andy Thacker 01483 413 500

The following disclosure is made in accordance with Article 19 of the EU Market Abuse Regulation 596/2014.

 
 1     Details of the person discharging managerial 
        responsibilities / person closely associated 
----  --------------------------------------------------------------------- 
 a)    Name                       Callum Baxter 
----  -------------------------  ------------------------------------------ 
 2     Reason for the notification 
----  --------------------------------------------------------------------- 
 a)    Position/status            Chairman and CEO 
----  -------------------------  ------------------------------------------ 
 b)    Initial notification       Initial Notification 
        /Amendment 
----  -------------------------  ------------------------------------------ 
 3     Details of the issuer, emission allowance 
        market participant, auction platform, auctioneer 
        or auction monitor 
----  --------------------------------------------------------------------- 
 a)    Name                       Starvest Plc 
----  -------------------------  ------------------------------------------ 
 b)    LEI 
----  -------------------------  ------------------------------------------ 
 4     Details of the transaction(s): section to 
        be repeated for (i) each type of instrument; 
        (ii) each type of transaction; (iii) each 
        date; and (iv) each place where transactions 
        have been conducted 
----  --------------------------------------------------------------------- 
 a)    Description of             Ordinary Shares of 1.0p each 
        the financial 
        instrument, type 
        of instrument 
---- 
 
       Identification             ISIN: GB0009619817 
        code 
 
 b)    Nature of the              Participation in Fundraise 
        transaction 
----  -------------------------  ------------------------------------------ 
 c)    Price(s) and                Name             Price(s)   Volume(s) 
        volume(s)                  ---------------  ---------  ---------- 
                                    Callum Baxter    2p         720,000 
                                   ---------------  ---------  ---------- 
----                             ---------------------------------------- 
 
 d)    Aggregated information 
---- 
 
  - Aggregated 
   volume                         720,000 
 
  - Price                         2 pence 
 
 e)    Date of the transaction    10 May 2017 
----  -------------------------  ------------------------------------------ 
 f)    Place of the               Outside a trading venue 
        transaction 
----  -------------------------  ------------------------------------------ 
 
 
 1     Details of the person discharging managerial 
        responsibilities / person closely associated 
----  ------------------------------------------------------------------- 
 a)    Name                       Gemma Cryan 
----  -------------------------  ---------------------------------------- 
 2     Reason for the notification 
----  ------------------------------------------------------------------- 
 a)    Position/status            Non-Executive Director 
----  -------------------------  ---------------------------------------- 
 b)    Initial notification       Initial Notification 
        /Amendment 
----  -------------------------  ---------------------------------------- 
 3     Details of the issuer, emission allowance 
        market participant, auction platform, auctioneer 
        or auction monitor 
----  ------------------------------------------------------------------- 
 a)    Name                       Starvest Plc 
----  -------------------------  ---------------------------------------- 
 b)    LEI 
----  -------------------------  ---------------------------------------- 
 4     Details of the transaction(s): section to 
        be repeated for (i) each type of instrument; 
        (ii) each type of transaction; (iii) each 
        date; and (iv) each place where transactions 
        have been conducted 
----  ------------------------------------------------------------------- 
 a)    Description of             Ordinary Shares of 1.0p each 
        the financial 
        instrument, type 
        of instrument 
---- 
 
       Identification             ISIN: GB0009619817 
        code 
 
 b)    Nature of the              Participation in Fundraise 
        transaction 
----  -------------------------  ---------------------------------------- 
 c)    Price(s) and                Name           Price(s)   Volume(s) 
        volume(s)                  -------------  ---------  ---------- 
                                    Gemma Cryan    2p         500,000 
                                   -------------  ---------  ---------- 
----                             -------------------------------------- 
 
 d)    Aggregated information 
---- 
 
  - Aggregated 
   volume                         500,000 
 
  - Price                         2 pence 
 
 e)    Date of the transaction    10 May 2017 
----  -------------------------  ---------------------------------------- 
 f)    Place of the               Outside a trading venue 
        transaction 
----  -------------------------  ---------------------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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May 11, 2017 06:19 ET (10:19 GMT)