Trident Royalties Plc, a prominent company engaged in global mining, recently declared that the scheme of arrangement has turned effective according to its announcement on 30th November 2021. As stated in Section 899 of the Companies Act of 2006, the scheme court order was delivered to the Registrar of Companies. The scheme became effective on the receipt and registration of this court order.
The Scheme of Arrangement is an essential part of corporate restructuring and dictates the reconstruction of a company’s share capital. It involves a company making an agreement with its shareholders or creditors that might encompass various things such as a change in the rights attached to the shares, alteration in the company’s operation, or reduction of share capital.
Upon the Scheme becoming effective, the existing issued shares of Trident were cancelled, and immediately reissued and allotted to Trident Royalties Bidco Limited, a wholly-owned subsidiary of Nomad Royalty Company Limited (Nomad) on 1st December 2021. Consequently, Nomad now holds 100% of the company’s issued share capital.
Nomad’s acquisition of Trident brings several benefits for both the companies and their stakeholders. Trident’s unique portfolio of royalties provides a strong base for Nomad to increase its diversification and revenue. Similarly, Trident will gain from being a part of Nomad’s increasing status in the mining royalties sector.
The combination of Trident’s unique selection of mining assets and Nomad’s expertise opens doors for massive growth potential. As indicated in the announcement, the amalgamation essentially delivers an immediate increase in diversification and cash flow and is expected to bring cost benefits derived from economies of scale over time.
The newly formed entity under Nomad will proceed to be managed by the experienced Trident management team. Their knowledge and industry-connectedness will play a significant role in enhancing the company’s future prospects.
To address the numerous requirements and contingencies of their shareholders, Trident clarified in their statement that those who held shares in the company at 6:00 p.m. on 30th November 2021, will receive 0.175 new Nomad shares for each Trident share they held.
The admission of Trident shares to trading on AIM was cancelled with effect from 7:00 am on 1st December 2021. The cancellation follows the completion of the Scheme, leading to Nomad holding the entire issued share capital of Trident.
As part of their continuing commitment to maintaining clear and transparent communication with their shareholders, both Trident and Nomad remain dedicated to providing updates and notifications regarding the course of the restructuring process.
In conclusion, Trident Royalties Plc becoming a part of Nomad is a significant step in the corporate journey of these mining companies. This move points towards a promising future, leveraging added diversification, enhanced operational capabilities, and increased value for the shareholders.