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In This List

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Element ends issuance, share lending deal for full control of capital structure

Element ASA said Dec. 10 that it terminated its issuance and share lending agreement with European High Growth Opportunities Securitization Fund and Alpha Blue Ocean Inc. to provide the mining company full control of its capital structure, avoiding any uncontrolled dilution that has limited its strategic alternatives.

"Element will now continue the process of restructure and divesting remaining mining assets and implement the new digital strategy," the company's CEO Geir Johansen said in a statement.

With the termination, EHGO is no longer entitled to require Element to issue new convertible notes in the amount of 25 million Norwegian kroner.

Element can no longer make drawdowns on its 500 million kroner convertible note facility. ABO, meanwhile, will redeliver its previously borrowed 180,800 shares to Element.

All shares and warrants in Element held by EHGO and ABO will remain owned by them and may be disposed as they see fit.

Element agreed to pay a lump sum termination fee of 2.6 million kroner.

The company will work toward issuing a listing prospectus to enable the admission to trading of 5,902,684 shares, including the 2,789,351 shares issued to ABO in August and October. This is expected to be in place before Jan. 31, 2020.

As of Dec. 11, US$1 was equivalent to 9.14 Norwegian kroner.