Teranga Gold Corporation (Teranga Gold) notes that pursuant to the scheme of arrangement, Gryphon Mineral’s shareholders received an aggregate of just less than 71 million Teranga Gold’s shares in the form of ASX-listed chess depository interests (CDIs)
The shares were received on the ASX on the basis of 0.169 Teranga Gold common shares or CDIs for each Gryphon common share not already held by the company.
In addition, Tablo Corporation controlled by David Mimran, is exercising its pre-emptive participation right, pursuant to a voting and investor rights agreement with Teranga Gold dated 14 October, 2015, to subscribe for approximately 9.7 million Teranga Gold’s common shares that represent 13.69% of the company’s common shares and CDIs issued under the scheme.
Upon completion of the private placement, Tablo will hold a total of 63.3 million or 13.41%, of Teranga’s issued and outstanding common shares.
The shares are calculated on a non-diluted basis and post issuance of the Teranga Gold common shares and CDIs issued on the scheme and the private placement.
Furthermore, the issuance price to Tablo will be $1.0322 per share, being the 5-day volume weighted average price of Teranga’s common shares as of 12 October, 2016.
Teranga adds that the company’s common shares issued to Tablo will be subject to a customary four month hold period.
Moreover, upon closing of the private placement, which is expected later this week, Teranga will have approximately 472.5 million issued and outstanding common shares and a market capitalization of approximately $486.7 million.
This was based on the closing price of the Teranga common shares on the TSX on 12 October, 2016.
The trading of the Gryphon shares on the ASX was suspended on 29 September 2016, however Gryphon has applied for the termination of the official quotation of its shares on the ASX and the removal of the company from the official list of the ASX.