26th Mar 2020 11:55
(Alliance News) - AVI Japan Opportunity Trust PLC said Monday it will not be proceeding with its plan to raise up to GBP30 million through a placing, subscription and intermediaries offer, due to continued market volatility and the ongoing Covid-19 pandemic.
The net proceeds realised from the fundraise was to be used to invest in cash-rich companies and growing companies.
However, subject to approval at the general meeting to be held later on Thursday, the trust said it intends to utilise its placing programme to have the ability to issue up to 85 million ordinary and C shares once market conditions return to normal.
The placing programme is still expected to open in early April and close in March 2021.
"Due to sustained market volatility resulting from the ongoing pandemic, the board does not believe it is in the best interests of the company or shareholders to proceed with the initial issue. However, subject to shareholder approval the board hopes that the placing programme will provide investors with the opportunity to invest in the company over the coming year to 2 March 2021, once market conditions stabilise," said Chair Norman Crighton.
Shares in AVI Japan Opportunity were up 5.9% at 94.88 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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