1st Jun 2020 14:09
(Alliance News) - Kropz PLC on Monday said it has raised USD353,595 through the placing of 4.5 million shares at 6.75 pence each, as it announced plans to raise a further USD4 million at the same price.
The price represents a 16% discount to Friday's closing price of 8 pence per share. Shares in the phosphate explorer were trading 15% higher at 9.00 pence each on Monday afternoon in London, giving it a market capitalisation of GBP25.5 million
Chair Robin Renwick and Chief Executive Mark Summers, and an unnamed existing investor, participated in the USD353,595 fundraise.
Kropz said that the new placing and open offer will give qualifying shareholders the opportunity to subscribe for open offer shares at 6.75p each on the basis of 9 open offer shares for every 50 existing shares. Major shareholder ARC Fund has agreed to subscribe for 25.5 open offer shares, equal to around USD2 million.
The cash raised will be used bring the company's Elandsfontein phosphate project, located in South Africa, into production, advance the new feasibility study at its Hinda project in the Republic of Congo, and for general working capital purposes.
Following admission, Kropz will have 287.9 million shares in issue.
By Ife Taiwo; [email protected]
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