Source - SMW
Diversion Technologies has sold its final 10 million warrants in Highlands Natural Resources to an institutional investor. 

The institutional investor has agreed to pay Diversion an initial consideration of 2 pence per warrant and, in line with the previous transaction between the parties, a deferred consideration equal to one half of the excess of the volume weighted average price ('VWAP') over 31 pence per Highlands share.  

The VWAP, for the purposes of this agreement, is defined as the volume weighted average price of Highlands shares from today through to the time of exercise of the warrants by the institutional investor. 

 In the event that the Institutional Investor exercises only part of the Warrants, then the VWAP for the next exercise will be the volume weighted average price of Highlands shares as of the date of last exercise through to the date of the next exercise.   

In addition, and also in line with the previous transaction between the parties, the institutional investor has granted Highlands the right to insist that the institutional investor exercises each week such number of Warrants equal to not less than 15 per cent. of the aggregate number of Highlands shares that trade during the previous five trading days at a price equal to or higher than 30 pence per Highlands Share.  

This arrangement provides good visibility on the exercise of the Warrants and the consequent receipt of new funds of £2.50 million (taking the total new funds received as part of these transactions to £7.5 million).   Following this transaction, Diversion owns no warrants in Highlands but continues to own 1,900,000 ordinary shares, representing 3.5 per cent. of the Company's total voting rights.   

Highlands chief executive Robert Price said: "This final sale by Diversion increases the potential new funds for Highlands to a total of £7.5 million, including the £5 million that Highlands has already received from earlier warrant exercises.  Taking into account the potential funds from today's transaction, we are now well placed to advance all of our core projects: the deployment of DT Ultravert, the development of Helios Two and the drilling programme in our Colorado acreage."  



At 3:01pm: (LON:HNR) Highlands Natural Resources Plc share price was -3.25p at 32.25p



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