16th Feb 2015 17:56
LONDON (Alliance News) - Cambria Africa PLC said Monday that it will no longer be seeking shareholder approval to delist, as it has entered into a conditional share subscription agreement with Ventures Africa Ltd.
Under the deal Ventures Africa would subscribe for 107 million shares at a price of 0.85 pence, raising GBP90.95 million. If all conditions are met and the deal goes through Ventures Africa would have a 50.55% stake in the company.
Cambria said that the proceeds of the placing would be used to provide general working capital for its existing investments.
As a result, the company will not be able to publish its accounts for the year to end-August 2014 by the deadline of the end of February, and its shares will be suspended from Tuesday morning until it can publish these accounts. It expects to publish the accounts by the end of May.
Cambria said the access to funding under the deal overrides the reasons it had originally given for delisting.
The company had proposed delisting in January, and at that time had said that the sale of the Leopard Rock Hotel by the company at a price well below expectations meant the total assets of the company were significantly reduced. Following this, it feels the costs associated with maintaining an AIM listing are disproportionate given the size of the company.
Shares in Cambria were untraded Monday, it last closed at 0.660 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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