1st Apr 2019 17:56
LONDON (Alliance News) - Chaarat Gold Holdings Ltd said Monday it intends to raise USD11 million through a convertible bond issue of USD10 million and a placing of shares.
Chaarat said it has secured a commitment for a USD10 million subscription for convertible bonds from a "new investor".
The company also intends to raise USD1 million through the issue of up to 2.6 million shares, pricing them at 30 pence each. The placing price represents a premium of about 4% to Friday's closing price of 28.8p.
Shares in Chaarat Gold closed up 0.9% Monday at 29.00 pence each.
The USD11 million raising completes the company's near-term funding plans. Chaarat noted, however, it will consider additional subscriptions up to USD5 million from current shareholders to "facilitate the introduction of longer-term investing partners".
"This new fundraise represents a clear expression of confidence in Chaarat's growth trajectory from both internal and external investors. I am delighted that investors recognise the fundamental value of Chaarat, subscribing for equity and bonds at respective premiums to the last share price," said Chief Executive Artem Volynets.
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