$4.5mil + they have around $2mil + they can draw $3.5mil loan at low interest
Capital L.P took 19.8% and there are no free options.
They agreed not to sell a single share til 2 years
The Board of Austin Exploration (“Austin” or “the Company”) (ASX:AKK) is pleased to announce that Lanstead
Capital L.P. (Lanstead), a UK-based institutional investor, has become a cornerstone investor in Austin via a
19.8% equity investment into the Company.
Securing this investor is an important development for the Company. Lanstead have committed their long
term-support for Austin and have agreed to hold the stock for a minimum of two years. Lanstead take at least a
two year investment view, providing stability to the register and allowing for stock price appreciation. This
placement has no restrictions on Austin pursuing and executing other equity and debt funding initiatives.
Lanstead will invest $4.513 million into Austin by way of a subscription for 59,000,000 new ordinary shares
(“Ordinary shares”) (the “subscription shares”) at a price of $0.0765 per share. A value payment in lieu of a
cash fee of 5,900,000 shares will be issued to Lanstead. The Company has issued the Subscription Shares
pursuant to Shareholder approval gained at the Company’s 2014 Annual General Meeting. There are no
options attached to this funding agreement.
AKK Price at posting:
7.4¢ Sentiment: None Disclosure: Held
