Equity Facility Draw Down

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

24 September 2020

Kropz Plc
("Kropz" or the "Company")

Equity Facility Draw Down

Kropz plc (AIM: KRPZ) is pleased to confirm that it has made its second quarterly draw down request under the equity facility with Kropz's major shareholder, the ARC Fund. The equity facility is for an amount of US$ 40 million (which cannot exceed ZAR 680 million) as announced on 13 May 2020 ("Equity Facility").  

The second draw down is for US$ 4 million which will be paid by way of issue of 50,962,963 new ordinary shares at the issue price of 6.75 pence per ordinary share to ARC Fund on 25 September 2020. The next draw down of the Equity Facility is expected to be made on or about 10 December 2020 and quarterly thereafter, in line with the terms of the Equity Facility.

Following the amendment to the project loan facility with BNP Paribas SA ("BNP"), relating to a fully drawn credit facility, the Company has agreed with BNP on the utilisation of c. US$ 15 million (ZAR200 million) of the existing cash balance, held on account, which will now be spent on the construction and commissioning of the Elandsfontein project, located in South Africa, on a pro rata basis with drawdowns of the Equity Facility.

Admission and Total Voting Rights

Application will be made for the 50,962,963 new ordinary shares to admission to trading on the AIM Market of the London Stock Exchange ("AIM"). It is expected that admission will become effective and that dealings in the new ordinary shares will commence at 8.00 a.m. on 25 September 2020.

On Admission, the Company's issued share capital will consist of 494,923,854 ordinary shares with voting rights. There are no shares held in treasury. This figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change of their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

Change in Shareholding

Following issue of the 50,962,963 of new ordinary shares, ARC Fund will be directly interested in 346,244,961 ordinary shares of the Company representing 70.0 per cent. of the issued share capital.

In addition, ARC Fund holds call options over certain shares held by Kropz International S.a.r.l as set out in the announcement on 13 May 2020.

For further information visit www.kropz.com or contact:

About Kropz Plc

Kropz is an emerging African phosphate explorer and developer, with an advanced stage phosphate project in South Africa and a phosphate project in the Republic of Congo. The vision of the Group is to become a leading independent phosphate rock producer and to develop into an integrated, mine-to-market plant nutrient company focusing on sub-Saharan Africa.

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