Golden Prospect Precious Metals has announced a one for two bonus issue of subscription shares to all shareholders of the Company.
The issue of Subscription Shares is in recognition of the invaluable support the Company has received from its shareholders. The Board believes that a bonus issue of Subscription Shares will be beneficial to existing shareholders as it will provide them with an instrument which may be traded on-market and gives them the opportunity to participate in any future net asset growth of the Company through subscribing for ordinary shares in the Company ("Ordinary Shares").
John Wong, who manages the GPPM portfolio, says: "We have taken the decision to provide our shareholders with a bonus issue of shares in recognition of the invaluable support we have received from them over the years. Through our portfolio approach we continue to identify key investments within the precious metals sector and are committed to generating growth for our shareholders. We look forward to building on GPPM’s strong performance through our investment in precious metals companies operating globally".
The Subscription Shares will be issued for nil consideration and will be distributed on a pro rata basis of one Subscription Share for every two Ordinary Shares held by existing shareholders on the record date for the Bonus Issue which is expected to be on or around 5.00 pm (GMT) on 28 October 2011. The Ordinary Shares are expected to be quoted on an ‘ex’ entitlement basis on or around 31 October 2011. No fractions of Subscription Shares will be allotted or issued and entitlements will be rounded down to the nearest whole number of Subscription Shares. A further announcement confirming the record date and ‘ex’ entitlement date will be made in due course.
A registered holder of Subscription Shares will have the right (but not the obligation) to convert all or any of his Subscription Shares into fully paid Ordinary Shares, on the basis of one Ordinary Share for every Subscription Share held. Conversion may be achieved by subscribing in cash for all or any of the Ordinary Shares for which the registered holder is entitled to subscribe. Conversion may be done on the last business day of May, August, November or February (each a "subscription date") commencing on the last business day of May 2012 and quarterly thereafter. The final date on which holders of Subscription Shares will be entitled to exercise their rights to convert into Ordinary Shares will be 28 November 2014.
The Subscription Shares will rank equally with each other, but will not generally carry the right to receive any dividends from the Company or the right to attend and/or vote at general meetings of the Company.
On the basis of the NAV of 129.9 pence per Ordinary Share as at 9 September 2011, the subscription price will be 150p per Ordinary Share. If the net asset value changes materially over the next six weeks, the subscription price may be varied at the discretion of the Board. It is anticipated that an announcement setting out the subscription price will be made by 28 October 2011 or such other time being on or before the record date.
A Listing Document prepared in accordance with the Listing Rules of the Channel Islands Stock Exchange, LBG (CISX) setting out full details of the Bonus Issue (together with the Proposed Placing, as described further below) is expected to be published around the end of October 2011, at approximately the same time as the application will be made for the Subscription Shares (and the new Ordinary Shares under the Proposed Placing) to be admitted to the Official List of the CISX and to be admitted to trading on the SETSqx trading platform of the London Stock Exchange.
