27th Jun 2016 11:01
LONDON (Alliance News) - Craven House Capital PLC shares soared on Monday after announcing plans to raise up to USD150.0 million in equity as part of a move from AIM to the Specialist Fund Segment of the London Main Market.
Craven House shares were trading up 42% to 1.49 pence per share on Monday morning.
The investment company focused on operating companies in emerging and frontier markets said it believes the Specialist Fund Segment is a "more mature and suitable market" for the business, and shareholders will vote on the proposal at a general meeting on July 20.
The resolutions that shareholders will vote on will include the proposal to cancel the company's AIM listing and approve the migration to the Specialist Fund Segment, together with the proposal which covers the company's currently conditional agreement to raise a substantial amount of new equity.
Craven House said the company will propose adopting new Articles of Association and a share capital reorganisation so shares are re-denominated in dollars, reduced in nominal value by a small percentage, and subsequently consolidated so that the shares each have a nominal value of USD1 each.
"The board believes that a consolidated share register and a quotation in US dollars is more suitable for international institutional and other investors and more reflective of our global portfolio, the majority of which is valued in US dollars," said Craven House.
If approved, Craven House envisages its AIM cancellation and associated move to the Specialist Fund Segment would become effective on the first day of August.
Craven House has conditionally entered into agreements with "an investor" for subscriptions of up to USD150.0 million in new shares at 1.25 pence per share on a pre-consolidation basis.
The company said it intends to issue the shares after the move to the Specialist Fund Segment and would require regulatory approval and binding subscription agreements being signed.
"There can be no guarantee that any capital investment in the company will be made and further updates will be provided to the market in due course," said the company.
Importantly, Craven House raised equity in both May and June, and said on Monday that it "hopes" to issue further shares on the same basis as those fundraisings before the meeting next month.
In May, Craven House raised GBP3.5 million by issuing 277.4 million new shares at 1.25 pence each and in June the company raised a further GBP3.3 million by issuing 266.8 million new shares at the same price.
By Joshua Warner; [email protected]; @JoshAlliance
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