12th Jan 2016 12:19
LONDON (Alliance News) - African Potash Ltd shares dropped on Tuesday after the company conducted a discounted placing to raise GBP825,000 to allow the company to improve local infrastructure to support the development of its operations.
The company issued over 48.5 million shares at a 1.7 pence per share, a near 10% discount to its closing share price on Monday of 1.9p. African Potash shares were down 6.3% to 1.78p on Tuesday afternoon.
Those shares represent around 5.8% of the company's enlarged issued share capital.
"The funds raised will be used to improve local infrastructure to support the development of African Potash's revenue generative trading operations in line with the company's strategy to become a vertically integrated fertiliser business focussed on Africa and for general corporate and working capital purposes," it said in a statement.
The placing was conducted with institutional and other investors, and over 2.2 million two-year warrants were issued to Cornhill Capital Ltd to subscribe for shares at the same issue price.
Last week, African Potash generated more than USD10.0 million in maiden revenue after shipping out a large amount of fertiliser to a customer in Zambia, the company's first trade under its agreement with COMESA.
By Joshua Warner; [email protected]; @JoshAlliance
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