28th May 2020 08:23
(Alliance News) - Fox Marble Holdings PLC on Wednesday said it plans to raise GBP800,000 through the issue of 45.7 million shares at 1.75 pence each as it announced the delay of the publication of its 2019 results.
Shares in the company - which is focused on marble quarrying and finishing in Kosovo and the Balkans region - closed 26% lower at 2.10 pence each on Wednesday, giving it a market capitalisation of GBP5.5 million. The stock was up 0.5% at 2.16p early Thursday.
The placing is being carried out through Allenby Capital and Brandon Hill Capital Ltd.
Fox Marble said its directors have agreed to use their fees to subscribe for placing shares throughout 2020 until operations affected by Covid-19 return to normal. In total, the directors have agreed to subscribe for GBP230,000 worth of shares. Andrew Muir - a substantial shareholder with a stake of 13% - has agreed to subscribe for 3.4 million shares, worth GBP59,500.
The new cash will be used to provide working capital for the medium-term, grow factory sales of processed marble within Kosovo and the greater Balkans area, and increase block sales to China and other large block markets. Funds also will be used to expand the company's marble reserves base, open new quarries in Kosovo as demand recovers, and develop sales and marketing activities.
Following admission, Fox Marble will have 308.4 million shares in issue.
Separately, the company said it has agreed with holders of GBP2.1 million of its cumulative unsecured loan notes to replace the eight existing series of CULNs with a new single class of CULN which will have a maturity date of December 1, 2026 and be convertible at any date from Monday next week at 5p each. The interest rate of the new notes is 2% per annum payable half yearly on June 1 and December 1.
"I am pleased to announce this conditional placing and rescheduling of the CULNs which considerably strengthens the balance sheet of the company. This allows us to continue to develop the business despite the cessation of activities in our quarries due to the coronavirus, which has also reduced production in our factory which nonetheless is allowed to continue to operate as a designated sector operation in Kosovo," said Chief Executive Chris Gilbert.
Due to the virus pandemic, Fox Marbles said will be unable to publish its 2019 results by June 30. However, it said it has been granted an extension and expects to publish the results by the end of September.
By Ife Taiwo; [email protected]
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