Forbes EMF among funds indicating interests in Warrant issues
Eros International Media Limited (EIML), majority-owned subsidiary of Eros Media World PLC (NYSE: ESGC), plans to raise up to US$54 million of equity capital via a public issuance of Convertible Warrants in India for exploring strategic moves with value creation for all stakeholders and sustainability for the company.
“We look forward to working with our new investors in exploring strategic moves with value creation for all stakeholders and sustainability for the company,” Pradeep Dwivedi, CEO and Executive Director of EIML, said of the fund-raising announcement on 26 May 2022.
“It is a recognition of our large and valuable curated content library and testimony to our growth prospects in tandem with the Indian media and entertainment industry in the web 3.0 era. We are pleased to note the significant investor interest in our Warrant issue.”
EIML has already received nonbinding indications of interest which collectively represent approximately US$54 million of Warrant Issue Price from investors.
Apart from the holding company Eros WorldWide FZ LLC, the issue is subscribed by marquee investor funds such Aegis Investment Fund, Aidos India Fund Ltd, Forbes EMF, NAV Capital Emerging Star Fund, Nexpact Limited, Vespera Fund Limited and India Opportunities Growth Fund – Pinewood Strategy.
The Warrants issuance will provide incremental liquidity to invest in EIML’s operations, help fund future growth initiatives and improve balance sheet strength for EIML.
EMIL’s existing Ordinary shares are listed on the Bombay Stock Exchange and the National Stock Exchange of India Limited.
The Warrants do not represent any immediate beneficial ownership of EIML
The latest Warrant issue is subject to EIML shareholder approval and other customary and regulatory approvals.
On 19 May 2022, the Board of Directors of EIML unanimously approved an increase in the authorised share capital of EIML as well as the issuance of up to 135 million Warrants at a strike price of approximately $0.40 per share (equivalent of Rs.30), which would entitle a Warrant holder to one share of EIML per Warrant at a premium of approximately $0.27 per share (equivalent of Rs.20).
The Warrant holders will be entitled to exercise the Warrants at any time, partially or in full, within a period of 18 months from the date of allotment by delivering to EIML a written notice of exercise. An amount equivalent to 25% of the Warrant Issue Price shall be payable at the time of subscription and the balance 75% shall be payable by the Warrant holders upon the exercise of the Warrant.
In the event that a Warrant holder does not exercise the Warrants within a period of 18 months from the date of allotment of such Warrants, the unexercised Warrants will lapse and the amount paid by the Warrant holders on such Warrants would be retained by EIML. fiinews.com
