Shumba issues warrants

Shumba Energy has approved the issuance of 603,226 warrants to General Research GMBH, the company said in a filing to Botswana Stock Exchange this week.

The warrants are being made in favour of General Research for the services it made for the company headed by Mashale Phumaphi. The services amounts to GBP 44,000.  The company provided promotional services to Shumba Energy to potential investors. “The warrants were priced at the prevailing market share price of the company when the services were rendered,” said a statement.

According to Investopedia, a warrant is a derivative that confers the right, but not the obligation, to buy or sell a security – normally equity – at a certain price before expiration.

“The impact of the issue of warrants on the net asset value and on the earnings per share of the company is immaterial” Shumba Energy is a mineral exploration company, currently building a portfolio of mining and exploration coal projects.