Hill Dickinson advises Emmerson plc on $46.75m debt and equity fundraising

Hill Dickinson’s Corporate team has recently advised AIM-listed client Emmerson plc on a debt and equity fundraise which raised gross proceeds of up to US$46.75 million from a leading South-East Asian investment group. Emmerson will use the funds for the continued development of the Khemisset Potash Project in Morocco.

The deal includes a placing of new shares to raise $6.75 million and a commitment by the investors to subscribe for up to US$40 million of convertible loan notes, with funding drawn-down by Emmerson once the overall funding package for the Khemisset Project is in place.  
 
The Hill Dickinson team was led by partner Michael Corcoran with assistance from senior associate Melissa Campbell and associate Matt Montgomery, all of the firm’s London Corporate team.
 
Michael Corcoran commented: “We are delighted to support longstanding client Emmerson on its funding. The debt and equity enables the company to further discussions with other providers of funding including project finance banks, sovereign wealth funds and royalty and streaming providers as it seeks the optimal overall funding solution for the Project. Congratulations to Graham Clarke and Hayden Locke, and the whole Emmerson team, for closing the deal.”
 
Graham Clarke, CEO of Emmerson, commented: “The project will be important for Morocco and will bring substantial social and economic benefits to the region of Khemisset. Our Moroccan stakeholders continue to be incredibly supportive of us as we move the project into the execution phase and develop it for the benefit of all of our stakeholders. Emmerson expects to invest well over US$500 million over the project’s initial 19-year life of mine, creating over 2000 direct and indirect jobs and establishing a long-term beneficial partnership with Morocco.”
 
Hayden Locke, director of Emmerson, thanked the Hill Dickinson team, saying: “As always, Michael and the team worked tirelessly to get the deal done, with numerous early mornings and late nights. They always give outstanding commercial advice, finding innovative solutions to problems we face.”

He added: “I was supposed to buy Michael lunch after the AIM listing earlier this year but, unfortunately for him, we dived straight back into a new deal. I’ve heard a rumour he is reconsidering his restaurant choice, from the previously agreed Wetherspoons, on account of the hard work we had him do while away on summer holidays! Joking aside, Michael and his colleagues are valuable members of the Emmerson team and will continue to form an important part of the company as we move to construction in 2022.”