10th Feb 2017 08:44
LONDON (Alliance News) - Monchhichi PLC on Friday said it has raised GBP2.1 million through a placing of 6.0 million shares at 35 pence each, along with 6.0 million warrants.
Shares in Monchhichi were down 16% at 35.31p on Friday morning.
The investment company, which formerly traded as Mercom Capital, said it will use the net funds to enable "swift implementation" of its new investing policy, which was approved by shareholders late last month.
Under the placing, warrants were issued on a 1:1 basis to placees, which will allow those placees to subscribe for new shares in the company at 80.00p each for a period up to January 24, 2018.
Monchhichi said it continued to actively pursue a number of investment opportunities under its policy, and hopes to make at least one investment in the coming weeks.
Alongside this, Monchhichi has settled GBP200,000 of outstanding professional fees and placing commissions through issuing 500,000 shares at an implied price of 40.00p per share.
The 6.5 million shares issued under both the placing and for payment of fees and placing commissions are expected to be admitted to trading next Thursday, following which there will be 43.9 million shares in issue.
"Our next immediate objective is to implement our bespoke strategy and clearly demonstrate that through a select number of meaningful proven investments we will build significant shareholder value for Monchhichi," said the groups's CEO Simon Fry.
By Hannah Boland; [email protected]; @Hannaheboland
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