19th Feb 2014 12:25
LONDON (Alliance News) - Shares in Cambria Africa PLC dropped more than 26% on Wednesday afternoon, after the company said it had raised USD4.06 million in an oversubscribed placing of around 33 million new shares.
The investment company, which has a portfolio of investments primarily in Zimbabwe, said the shares were placed with new and existing investors at 7.5 pence a share, a 9.6% discount to the 30-day volume weighted average market price on February 10.
It said the placing received support from directors and management within the company, who jointly subscribed for 12% of the offering, as well as existing shareholders, which subscribed for 24% of the offering.
The group said the placing will provide working capital to support its expansion strategy for Millchem Holdings and Payserv Africa.
"In line with this strategy, a multi-year, regional and product roll-out strategy for both Millchem and Payserv has been developed and Cambria is excited about the return prospects offered by these two investments," it said.
The company's shares were the biggest faller on AIM before midday Wednesday, down 26.7% at 5.50 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Cambria Africa