From Financialpost · · 1m 10s
Arcf IV Invests in Largo's $5.7m Offering
Arcf IV purchases 2.32m Largo shares in $5.7m registered direct offering.
In brief
Arcf IV purchases 2.32m Largo shares in $5.7m registered direct offering. Arcf IV and related funds own 35% of Largo after investing in its $5.7m registered direct offering. Originally reported by Financialpost.
Arcf IV invests in Largo
Arias Resource Capital Fund IV L.P. agreed to purchase 2,321,428 units of Largo at $0.56 per unit in a $5.7 million registered direct offering.
Transaction details
Each unit consists of one common share and one share purchase warrant with a $0.70 exercise price exercisable for five years.
Ownership structure
The ARC Funds collectively own 35,278,481 common shares and 7,239,461 warrants representing 35.01% of Largo on a partially diluted basis.
Key stakeholders
J. Alberto Arias holds 164,565 vested options, 336,913 restricted share units, and 62,533 common shares directly.
Post-transaction ownership
The ARC Group's holdings represent 30.64% of Largo on a non-diluted basis after full exercise of warrants and options.
Management control
J. Alberto Arias serves as director for each ARC Fund general partner and indirectly controls the Manager but disclaims beneficial ownership.
The key point
Arcf IV and related funds own 35% of Largo after investing in its $5.7m registered direct offering.
