19th Aug 2015 11:27
LONDON (Alliance News) - African Potash Ltd Wednesday refuted claims made by the Daily Mail that the company is intending to conduct a placing at a significant discount to its current share price.
Back in June, the company said it had entered into talks with a free trade union for twenty African member states, the Common Market for Eastern and Southern Africa, with the aim of creating a platform for the mining, production and distribution of fertiliser focused on the Eastern and Southern Africa region and beyond.
Despite the news, it had little effect on its share price, closing slightly up on June 11 at 0.41 pence from 0.405 pence on the close of June 10.
However, on August 4, the company signed a memorandum of understanding with COMESA and the Mask Africa Crowd Farm Fund Ltd. African Potash entered a three-year fertiliser trading deal with COMESA to supply at least 500,000 metric tonnes of fertilisers on an annual basis to off-take partners identified and introduced by COMESA.
Since that announcement, the company's shares have steadily risen to 1.30 pence per share on Wednesday, more than 3.25 times its price before the signing of that deal.
That caused African Potash to release a statement Tuesday that it was unaware of any other reason, apart from the deal with COMESA, for the upward movement in its share price.
Early Wednesday, the Mail Online, referring to African Potash, said "bears now await a placing at a significant discount to the current share price" in its Market Report.
The potash exploration company said the article is "a speculative and unfounded statement" and said no such placing is being considered.
http://www.dailymail.co.uk/money/markets/article-3202457/MARKET-REPORT-Shire-shares-drug-maker-looks-set-second-dose-Baxalta.html
By Joshua Warner; [email protected]; @JoshAlliance
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