re: Ann: Coalspur Secures US$300 Million Seni... EIG will be granted 100 million warrants to purchase Coalspur shares, as noted below. The grant of the warrants is subject to necessary shareholder and regulatory approvals.
• 40 million warrants with an exercise price of A$0.90 (unless the five day volume weighted average price (“VWAP”) prior to the financial close date is lower, in which case the exercise price will be the VWAP). These warrants expire 36 months from financial close;
• 30 million warrants with an exercise price of 125% of the five day VWAP prior to financial close. These warrants expire 96 months from financial close; and
• 30 million warrants with an exercise price of 150% of the five day VWAP prior to financial close. These warrants expire 96 months from financial close.
Trying to get better undertsanding about this part of the deal and have a few questions that if anyone can shed any light on any of them would be greatly appreciated:
What is the financial close date?
Is this yet to be announced?
Can they exercise these warrants and purchase shares at any time within the 3 years from financial close (whenever that is) for the first parcel and 8 years for the other two parcels, or do these time periods have to elapse before the warrants can be exercised?
Or am I jumping the gun and these are all things yet to be decided?
My main reason for asking is the concern that EIG will in some way (through a "friendly entity") try to hold the share price down until they decide to exercise, but surely they will not be able to hold it down for 3 years and definitely not 8 years??
Or am I just way of the mark??? (Completely possible!!!).
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- Ann: Coalspur Secures US$300 Million Senior Debt
Ann: Coalspur Secures US$300 Million Senior Debt , page-9
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