7th May 2015 08:14
LONDON (Alliance News) - MXC Capital Ltd Thursday said it has raised GBP11.7 million after expenses in a placing of 480.0 million new share priced at 2.5 pence each.
In a statement, the merchant bank said it will use the money raised and cash it already has to "pursue a number of near-term, identified opportunities and further develop a growing pipeline of future opportunities".
In addition, the company wants to acquire parent company MXC Holdings Ltd to simplify its overall structure. It plans to acquire MXC Holdings, which was established by Ian Smith and Tony Weaver in 1999, for up to GBP15 million in share-for-share deal through subsidiary MXC Guernsey Ltd.
Nigel Wray, who already holds an 18.14% stake in the company, is subscribing for 116.0 million new shares. MXC Holdings owns 53.53% of MXC Capital.
Broker Zeus Capital has been given an option that allows for up to 40.0 million additional new shares to be issued.
"The placing, combined with our existing funds, provides the team with more than GBP27 million to invest in a significant pipeline of identified opportunities. The proposed all share acquisition of MXC Holdings simplifies our structure and aligns the interests of all our shareholders," Chairman Peter Rigg said.
Separately, MXC said it made a GBP99,000 pretax loss in the six months ended February 28, compared with a GBP342,000 pretax loss in the corresponding period of 2014.
The company said the results aren't representative of its business in the future, as they included the cost of establishing the business and a time during which its trading was restricted as it acquired MXC Capital Advisory LLP, went through regulatory processes and re-domiciled to Guernsey.
MXC said its trading earnings before interest, tax, depreciation and amortisation, before GBP250,000 one-off costs, amounted to GBP5.9 million between November 1 2014 and April 30 2015.
"We have a track record of successfully investing in growth technology companies. Our team has proven operational skills. We now have an FCA regulated advisory business, originating and executing transactions. That's a very potent combination of skills. Our ambition is clear: we are seeking to build the leading technology focused merchant bank, building value for the companies we invest in as well as for our own shareholders," Marc Young, chief executive, said in a statement.
MXC shares were down 21% at 3 pence per share on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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