Issue of Equity and Investment of capital

4 July 2017

 

First Sentinel plc

(“First Sentinel” or the “Company”)

Issue of Equity and Investment of capital

 

First Sentinel Plc (“First Sentinel” or the “Company”) (NEX: FSEN), the investment company focused on providing growth capital for public and private company investments, announces that it has today completed a placing to raise £700,000 and accordingly issued 6,363,636 new Ordinary Shares of 1p each (“Ordinary Shares”) at a price of 11p per Ordinary Share (“New Shares”). Following the issue of the New Shares, the Company has 13,450,803 Ordinary Shares in issue, each share carrying the right to one vote.

The New Shares will rank pari passu in all respects with the existing Ordinary Shares.

The proceeds of the placing will be used to assist the Company in the implementation of its investment strategy where the Company provides growth capital (equity, mezzanine debt and senior debt) for public and private company investments across a number of different market sectors.

In addition, the following investments have been made by First Sentinel:

Red Rock Resources plc (AIM: RRR)

Red Rock Resources plc (“Red Rock”) is a natural resource development company with interests in gold, manganese and oil production.  On 23 June 2017, it announced that it had entered into financing agreements to acquire an interest of between 16% to 30% in Steelmin Limited (“Steelmin”) and provide a loan of approximately €3.9million (the “Loan”) to fund Steelmin to complete the refurbishment and recommissioning of a ferrosilicon smelter in Jajce, Bosnia.  Production from Steelmin is expected in Q1 2018 with target annual revenues on initial production levels of €36m and EBITDA of €7m.

Steelmin’s plant consists of two electric arc furnaces with a combined annual capacity of 48,720 tonnes ferrosilicon (FeSi 75) and 9,700 tonnes of microsilica and expected initial capacity from Furnace V of 29,000t of ferrosilicon p.a. and 5,800t of microsilica.

To fund the Loan, Red Rock has borrowed from YA 11 PN Ltd, on behalf of a group of institutional investors, $4,230,750 on a secured basis for a term of one year bearing interest at 13% p.a. with a renewal option for a further 8 months for a fee (the “Note”). First Sentinel participated $300,000 in this Note.  The Note carries warrants in Red Rock with a two-year life and exercisable at a price of 2.2p per share.  The Note is secured against Red Rock’s holding in Jupiter Mines and the loan to Steelmin.

Phoenix Global Mining plc (AIM: PGM)

Phoenix Global Mining plc (“Phoenix”) is a US focussed base metal explorer and developer focussed on advancing the Empire Mine in Idaho, into open pit copper oxide production with additional upside available from potential underground development.  The shares of Phoenix were admitted to trading on AIM on 28 June 2017.

First Sentinel subscribed for 2,032,520 ordinary shares at the placing price on IPO of 4p per share (a subscription for approximately £81,000).

*Milamber Ventures plc (NEX: MLVP)

MilamberVentures plc is a growth accelerator focussed on Media, Technology and education.  Milamber partners with entrepreneurs and ambitious management teams to develop high value, innovative, growing businesses.

First Sentinel subscribed for 500,000 new ordinary shares in Milamber at a price of 7p per share for a total of £35,000.

*Note: First Sentinel Corporate Finance, a FCA registered firm wholly owned by a director of First Sentinel, Brian Stockbridge, acted as broker/ introductory agent in connection with this fundraise.

 Total Voting Rights

The above figure of 13,450,803 should be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

Following the issue of the New Shares, the Company is aware of the following changes to holdings required to be disclosed under the Financial Conduct Authority’s Disclosure and Transparency Rules:

Directors Percentage of issued share capital
Brian Stockbridge 3.83%
Aimee Freeding 3.83%
Tom Dignall 2.03%
Shareholders
Alexander Easdale 14.87%
James Easdale 14.87%
Unity West Capital UK Limited 3.72%
James Shields 3.38%
Mrs Saleh 3.38%

 

Gerry Defries and Alec Grey no longer have a notifiable interest in the Company.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

About First Sentinel

First Sentinel is an alternative investment company, registered with the FCA as a small authorised UK AIFM, which provides growth capital for public and private company investments.  First Sentinel invests in a range of debt and equity instruments in target portfolio companies.

The Company’s website is www.first-sentinel.com

For further corporate information, please contact:

 

Mr. Kris Kottmeier

VP Corporate Development

UK/Euro Tel: +44 (0) 20 3637 6522

North America Tel: +1 (604) 506-2502

Email:  Kris@first-sentinel.com

 

Mr. Brian Stockbridge

CEO

First Sentinel Plc

Tel: + 44 (0) 7876 888 011

 

NEX Corporate Advisor

Beaumont Cornish Limited

James Biddle / Roland Cornish

Tel: +44(0)20 7628 3396

 

Financial PR Advisor

Felicity Winkles / Joe Burgess

Tel: +44(0) 776 932 5254