1st Dec 2015 08:16
LONDON (Alliance News) - MXC Capital Ltd on Tuesday said it has agreed to invest in and act as financial adviser to Eco City Vehicles PLC, a cash shell listed on AIM.
The specialist merchant bank said it will help ECV to find "suitable companies or assets in the technology sector for acquisition or investment".
MXC will take a 24.7% stake in ECV by subscribing for 109.3 million new shares at a total cost of GBP1.3 million, as part of a broader GBP5.0 million fundraising.
The company has been granted evergreen warrants over 5.0% of ECV's enlarged share capital at a price of 1.22 pence per share.
Separately, MXC said it made a GBP5.1 million pretax profit in the year ended August 31, compared with a GBP1.1 million pretax loss the prior year.
"We've shown we can identify great investment opportunities and then bring something extra to them through our merchant banking model of operational and corporate finance support," Chairman Peter Rigg said in a statement.
By Samuel Agini; [email protected]; @samuelagini
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