The Bushveld Minerals Limited (LON: BMN) share price plunged 21.4% on news that its subsidiary, VRFB Holdings Limited (VRFB-H), had received a notice from Garnet Commerce Limited (Garnet) would like to exercise its option in Enerox Holdings Limited (EHL), which wholly owns Enerox GmbH (Enerox).
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Garnet said that it would pay US$3,250,000 to Enerox Holdings Limited (EHL) or directly to its subsidiary Enerox in return for shares in EHL, which will result in Garnet holding 60% of the issued share capital of Enerox and VRFB-H holding the remaining 40%.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The deal is subject to Garnet obtaining approval from the Austrian Minister of Labour and Economic Affairs under the Austrian Investment Control Act and notification, and if required, from the Austrian competition authorities.
The deal’s finalisation will also include deducting the amount of any interim funding provided by Garnet to Enerox before the option’s completion. Until completion of the option, Garnet will have certain limited rights to direct the affairs of EHL and Enerox.
The companies involved have also agreed to amend their existing joint venture agreement about EHL, in particular, so that Garnet shall have the right to appoint a majority of board members to EHL, given that it will now own 60% of EHL’s issued share capital.
If EHL or Enerox ever need additional funding that is not available from third parties, Garnet and VRFB-H will have to provide the funding pro rata based on their shareholding. However, if one party is unable or unwilling to participate in such funding, then the party will be appropriately diluted.
Garnet and VFRB-H have agreed that Enerox and EHL will continue engaging with Bushveld Energy Limited (BEL), which is being spun off from Bushveld Minerals Limited (BMN).
The two firms have agreed that for six months, BEL shall retain its rights of first refusal to supply electrolytes to Enerox projects subject to offering the best pricing, after which BEL will have the right to bid on any such projects.Â
Lastly, Enerox will support BEL in completing the installation and provide ongoing contractual support for the Bushveld Minigrid.
*This is not investment advice.
Bushveld Minerals (BMN) share price.
The Bushveld Minerals (BMN) share price fell 21.36% to trade at 2.3200p, from Thursday’s closing price of 2.9500p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.