J.O Steel Holdings secures €25 million capital commitment from GEM Group

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J.O Steel Holdings Ltd, a London-based steel manufacturing holding company, has announced that it has signed an agreement with GEM Global Yield LLC SCS, the Luxembourg-based private alternative investment group, to provide J.O Steel Holdings Ltd with up to EUR €25 million over a three-year term following a public listing of J.O Steel Holdings common stock.

J.O Steel Holdings will use the funds to part-finance further acquisitions of steel plants in Bangladesh, South Asia, and Africa, eyeing emerging market countries with substantial GDP growth and infrastructure requirements.

The initial €25m will be in the form of a capital commitment that allows J.O Steel Holdings to draw down funds during the three-year term by issuing shares of J.O Steel Holdings common stock to GEM (or such persons as it may direct) and subject to share lending arrangement(s) being in place. JO Steel Holdings will control the timing and maximum amount of drawdown under this facility and has no minimum drawdown obligation. Concurrent with a public listing of J.O Steel Holdings shares, the company will issue warrants to GEM to purchase up to 10% of the outstanding common stock of the company on a fully diluted basis. The warrants will have an exercise price per share equal to the Closing Bid Price of the Shares on the first day of trading upon the completion of the Going Public Transaction.

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