24th Apr 2019 12:01
LONDON (Alliance News) - Minoan Group PLC said on Wednesday it plans to raise around GBP3.0 million through a subscription and open offer, which will go towards strengthening the company's balance sheet and reducing debt.
Shares in the luxury resort developer were 13% higher at 2.20 pence in London on Wednesday.
In the firm subscription by existing creditors of the company, Minoan will issue 43.5 million shares at 2.75 pence per share to raise GBP1.2 million either in cash or as the release of debt owed to the creditors.
For the conditional subscription and open offer, the group will issue 63.9 million shares in total for the same price to GBP1.8 million, either in cash or as the release of debt.
Under the open offer, qualifying shareholders can subscribe on the basis on two new shares for every nine existing shares held.
The issue price of 2.75 pence reflects a 41% premium to Minoan's closing price on Tuesday of 1.95p.
In addition, some directors have agreed to convert some of remuneration to which they are entitled but have not been paid into 21.3 million shares at a price of 3 pence per share, leading to GBP640,000 of debt being removed from the balance sheet.
The fundraising is conditional on shareholder approval at Minoan's general meeting on May 10.