Huge Group gets stake in iTalk Cellular
In terms of the agreement, the group said it will issue 93 million ordinary shares of 100 of 1c each to the Trust at an issue price of 550c a share, a premium of 549.99c per share.
Huge has also given the Trust an option to require Huge to acquire those shares at a price of 335.27c per share. This option has to be exercised on or before June 30 this year.
The agreement also entitles Huge Group to secure an option allowing it to acquire those shares at a price of 550c per share. This option is to be exercised on or before June 30, 2010.
If the Trust decides to exercise the former option, Huge said that it has already secured undertakings from a number of institutions to subscribe for 23.8 million of the Trust's iTalk shares, and it has also secured debt funding from Investec Private Bank, a division of Investec Bank Limited, to enable it to acquire 69.19 million of those shares.
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