21st May 2015 15:24
LONDON (Alliance News) - Tungsten Corporation PLC Thursday said it intends to raise GBP15 million from a firm and conditional share placing through an accelerated bookbuild so it can strengthen its cash position and continue to invest in its business.
The firm placing consists of 5.0 million new shares to be sold at 0.438 pence each, with the remainder conditional on shareholder approval. Tungsten is currently limited to issuing 5.0 million new shares, hence the need for shareholder approval for the remaining shares to be issued.
The proceeds are to be invested in Tungsten's electronic invoice network, its early payment business and to fund new product developments.
The placings have been underwritten by Canaccord Genuity Ltd.
Earlier, the electronic invoicing, analytics and financing company said it is currently in talks on a proposed joint venture with an unnamed global financial institution and said it is actively exploring strategic options for its Tungsten Bank business.
The company said joint venture with the financial institution would, if completed, be complementary to its current funding arrangements and would involve Tungsten Early Payment and some of the institution's customers being channelled through the joint venture.
It said there is no certainty the joint venture will be completed.
In addition, Tungsten said it is actively exploring strategic options and is in talks with the Prudential Regulation Authority on the nature of the operations and governance of the bank. Tungsten said the talks should not have an impact on its invoice financing operations.
Tungsten shares were down 27% at 71.50 pence on Thursday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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