18th Jun 2015 09:08
LONDON (Alliance News) - Kibo Mining PLC shares rose Thursday after it said that it will get back nearly all of the money that got tied up in the accounts of its former broker Hume Capital Securities PLC when that firm went into administration.
The broker fell in administration just after Kibo Mining had done a placing in February, meaning that the money for shares issued to third-party investors was tied up in Hume Capital's client money account.
"Kibo has been in regular contact with the joint special administrators of Hume Capital who have now confirmed that they are in the final stages of the administration process and anticipate disbursing client monies under administration in one lump sum payment by early September 2015," Kibo said Thursday.
"Kibo understands that substantially all of the GBP526,000.00 (representing the consideration for 10,520,000 Kibo shares which were to be issued to third party investors) which had been paid into Hume Capital's client money account, will be released to Kibo, less a small proportion representing costs of the administration," it added.
The company said it has also almost finished the forfeiture procedure for the GBP204,000 consideration regarding the 4.1 million Kibo shares issued to Hume Capital's discretionary clients.
Kibo raised GBP950,000 in its share placing, and received about GBP219,500 before Hume Capital's administration. That left about GBP730,500 outstanding locked up in the Hume Capital accounts.
"The latest developments with regard to the February placing with Hume, together with the precautionary measures taken to date, will ensure that the company's ongoing business activities have not, and will not be affected adversely in any way. The company has been conducting its business as usual, without any undue disruption. Shareholders can expect regular further updates on the company's activities in the coming weeks," Kibo Mining Chief Executive Louis Coetzee said.
Kibo Mining shares were up 4.6% at 4.57 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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