19th Mar 2014 09:35
LONDON (Alliance News) - Paragon Resources PLC Wednesday said it has raised GBP45,000 via a draw down on its Equity Financing Facility with Darwin Strategic Ltd, but added that if it doesn't make an acquisition soon its shares could be cancelled.
The AIM-listed agriculture investing company said that under the terms of the agreement, it raised the cash by the issue of 25 million shares in the company at a 0.18 pence per share to Darwin.
The company said that if the company has not made an acquisition by March 25 to implement its investing policy, its shares will be suspended from trading under AIM rules on March 26.
Paragon said if its investment policy has not been implemented within six months of suspension, its shares trading on AIM will be cancelled.
The company said that it remains in active negotiation and is undertaking due diligence on certain opportunities for investments, and further announcements will be made shortly.
Paragon said it remains committed to developing a substantial agribusiness group, focussed on Africa, through a process of both acquisition and organic growth.
The company bought a 40% stake in agricultural consultancy Greenstar Resources Ltd in its first half ending November 30, 2013, and said in February it is confident it will move forward on a "significant investment project" in the "relatively near future".
Paragon shares were down 16% to 0.180 pence, putting it in the top three AIM fallers in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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