Lydian investor EBRD to acquire 33.5mln shares

(MENAFN- ProactiveInvestors - N.America) Lydian International Ltd. (TSE:LYD) has entered into a subscription agreement with supranational investor European Bank for Reconstruction and Development (EBRD), the company said on Friday.

Lydian will issue 33.5mln ordinary shares of the company at a price of 34 cents per share, for aggregate gross proceeds of $11.39mln, on a private placement basis as previously announced on July 21.

EBRD has been granted a pre-emptive right on any future equity or equity-linked offerings by the company up to the percentage of its ownership at the time of offering, so long as ERBD beneficially owns at least 5% of the total outstanding ordinary shares of the company.

In addition, ERBD has been granted the right to designate one candidate for nomination to the board of directors of the company as long as ERBD maintains its share ownership stake in the company at or above 5%.

Such ownership percentage will be calculated on a non-diluted basis, but without giving effect to the issuance of any exempt securities.