11th Jun 2018 16:40
LONDON (Alliance News) - Harvest Minerals Ltd late Monday said it raised GBP9.7 million through an oversubscribed placing of 52.5 million shares at a price of 18.5 pence each.
Earlier on Monday it intended to raise GBP9.0 million, but raised more due to the strong demand for its shares.
Shares in the fertiliser producer were down 1.8% at 20.12p on Monday afternoon.
"This GBP9.7 million placing is a significant achievement for the company and a pivotal moment in its evolution," said Executive Chairman Brian McMaster.
"The funds raised via this oversubscribed accelerated bookbuild will enable us to increase production at Arapua as incoming sales orders necessitate, strengthen our in-country sales team and enable us to capitalise on further opportunities," added McMaster.
Proceeds will go towards further increase production at the company's Araqua fertiliser project, expand the company's sales and marketing activities and advance Harvest's additional assets in Brazil.
The placed shares will represent 27% of the enlarged share capital, and the placing will be conducted through an accelerated bookbuild, of which Arden Partners is acting as bookrunner.
McMaster purchased 4.2 million shares at a price of 18.5 pence per shares reflecting an investment of GBP770,000. Following the transaction, McMaster holds a total of 6.7 million shares in the company.
In addition, Harvest Minerals has signed a sales order for 50,000 tonnes of KPFertil from an unnamed Brazilian fertiliser producer.
"This latest sales order demonstrates the wider commercial potential of KPFertil; in that, it is going to be used as a key constituent of a blended product represents a new use for KPFertil and a new market opportunity for Harvest. Our focus during 2018 remains on sales and building Harvest into a profitable, cash-generative business," added McMaster.
Related Shares:
Harvest Mi (di)