22nd Oct 2014 08:55
LONDON (Alliance News) - Investment company Concha PLC Wednesday said it has raised GBP4 million in a new equity issue, and a warrant issue to raise a potential further GBP8 million, as it posted a narrowed pretax loss in the year to end-June.
Concha is focused on the mobile, internet, sports, social media, digital and technology space.
The company said it has raised GBP4 million through the placing of 100 million shares at 4 pence each, representing 7.3% of its issued share capital, with new shareholders. This placing also provides for warrants to subscribe for an additional 100 million warrants at 8 pence per share, potential raising a further GBP8 million.
The exercise period for the warrants is two years, and in the event that Concha's mid-market closing share price for five consecutive business days is at or about 15 pence per share, the warrants will automatically lapse if not exercised.
It will use the funds raised to pursue its investment strategy, it said.
Shares in Concha are down 0.6% at 4.67 pence Wednesday morning, having initially risen to a new 52-week high of 5.01p in early trade.
Concha posted a pretax loss of GBP1.2 million, narrowed from a loss of GBP1.9 million a year before as higher general and administrative expenses were offset by lower exceptional costs.
In the previous year Concha posted exceptional costs of GBP1.5 million, relating to investments and amounts it advanced to Moshen Ltd that it wrote off, and a provision against a loan due from Churchill Media Ltd.
Concha posted revenue of GBP14,000 for the year, while in the previous year it posted no revenue.
Concha said it was continuing to pursue its former legal advisers for losses it suffered as a result of the failure to register a valid security interest in the assets of Moshen over the loan it advanced. This is now in the hands of insurers, Concha said, and it expects to be able to update on the outcome of any settlement discussion by the end of the year.
As for Churchill Media, Concha said that it has opted for a more formal process to recover its loan, as the likelihood of securing any recovery from Churchill Media or its affiliates "is remote".
It has made a provision of GBP100,000 against a loan it advanced to Pixcom Ventures, in case recent negotiations on a material contract by Pixcom do not end well.
"Concha is now well positioned with a strong board and much-improved capital base. Given the opportunities currently under evaluation, your board is confident of being able to consummate a number of exciting and considered investments during the course of the coming months," said Chairman Chris Akers in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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