ERI convenes meetings for warrant holders, shareholders

Tuesday, 17 May 2011 00:00 - - {{hitsCtrl.values.hits}}

Environmental Resources Investment Plc (ERI) said yesterday it has separately convened meetings for warrant holders and shareholders on the issue of 2011 warrants conversion.

Following a Board meeting on Friday, the ERI will convene a meeting on 2 June for the 2011 warrant holders to consider and if thought fit to approve amendments to the terms of the warrants. What ERI is proposing is that warrant holders who wish to exercise the 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 be 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 be applicable to persons who were warrant holders on the Cut Off 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.

The ERI Board also resolved to 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.

The 2011 Warrant 0001 last traded at Rs. 43.10 on May 13th.

However, last week 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.

ERI Board meeting which 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.

Perhaps taking strength from the new move and greater clarity, the market reacted positively with all ERI listed securities gaining in their prices.

ERI main share gained by 90 cents to close at Rs. 68.30 whilst it hit an intra-day high day of Rs. 69.40. ERI 2012 warrants rose by 50 cents to Rs. 31.90, 2014 warrants rose by 30 cents to Rs. 28.30 and 2015 warrants by 70 cents to Rs. 29.10.