ERI warrant holders back extension

Year 2011 warrant holders of Environmental Resources Investment Plc at an Extraordinary General Meeting (EGM) yesterday unanimously approved the special resolution to extend the expiry date of the said warrants.

Last month ERI proposed that warrant holders who wish to exercise the 2011 warrants be permitted to do so subject to the expiration date being extended until 7 July 2011, which will be the first date of expiration or 21 December, which will be the second date of expiration.

In order to be eligible to exercise the warrant on the second date of expiration (subject to the provision with regard to the applications for additional shares) the warrant holder should have been on the register of warrant holders at the close of business on 13 May 2011.

Warrant holders can choose one of such expiration dates to exercise their rights, provided however that applications for additional shares for warrant holders would only applicable to persons who were warrant holders on the cutoff date i.e. 13 May and such applications would be entertained on or before the second date of expiration. ERI said all other terms and conditions contained in its original circular of 12 June 2009 remain valid and operative.

With the successful conclusion of the EGM of 2011 warrant holders, ERI will convene a meeting of shareholders on 16 June 2011 to consider and if thought fit to pass a special resolution approving the revised terms of the exercise of 2011 warrants.

Originally the 2011 warrants amounting to 104.3 million were exercisable at Rs. 24 each between 13 May and 3 June.

ERI’s major shareholder and warrant holder Lionhart Investment Ltd informed via notices in the newspapers of its resolution to defer the exercising of warrants. It proposed a new exercisable period between 1 November and 21 December 2011.  The ERI Board meeting took cognisance of this position of Lionhart, which owns 85% of shares in the company as well as 94% of the 2011 warrants, and resolved to give warrant holders the option of exercising the warrants in two stages.