19th Oct 2015 07:55
LONDON (Alliance News) - Savannah Resources PLC Monday said it has raised GBP339,060 after issuing shares to a new investor.
The company issued under 17.0 million new shares at a price of 2.0 pence per share to Al Marjan Ltd, giving it a 6.0% stake in the company.
"We are delighted to see very solid support for Savannah's investment case with the placing to a new significant shareholder," said Chief Executive David Archer.
On October 7, Savannah raised GBP225,000 after issuing 13.3 million shares at a 1.7p to three of its existing shareholders. Archer said the proceeds from both placings has put the company in an "excellent position to continue its exciting business plan".
In addition, Chairman Matthew King has elected to take part of his remuneration through 833,333 shares at 2.0p. However, 205,495 of those shares will be sold to cover the related tax liabilities, leaving a balance of 627,838 shares. Following that, King will hold a 0.24% stake in the company.
Of the total shares that need to be issued, the first 8.9 million shares will be issued to settle the first tranche of shares to Al Marjan and to settle the transaction with King, with the remainder of shares being issued to Al Marjan once a general meeting has been held on November 5 for shareholders to approve the second tranche.
Savannah shares were up 0.3% to 2.06p on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Savannah Resources