11th Nov 2019 13:12
(Alliance News) - InfraStrata PLC on Monday said it has completed a discounted placing as it eyes concluding the acquisition of the Harland & Wolff Belfast shipyard assets in December.
In the accelerated bookbuild, InfraStrata priced 2.0 million shares at 0.3 pence each, a 12% discount to Friday's closing price of 0.34p per share.
Shares in the natural gas storage firm were 8.5% lower at 0.31 pence each in London on Monday afternoon.
Chief Executive John Wood said: "We are very pleased with the result of the placing bookbuild as this will provides us with the necessary capital to complete the acquisition of the Harland and Wolff assets."
Earlier on Monday, the company said the proceeds will be used to finance the acquisition of the Belfast shipyard, progress its Islandmagee gas storage project in Northern Ireland and reduce the outstanding GBP600,000 from a bridging loan with investors Riverfort Global Opportunities PCC and YA II PN Ltd.
InfraStrata aims to conclude the GBP5.3 million acquisition of Harland & Wolff assets, like forklifts, IT equipment and office buildings, in a Belfast shipyard on December 5.
In October, the company agreed to buy the assets, from administrator BDO NI, saving the shipyard, where the Titantic cruise liner was built, from closure.
InfraStrata said GBP500,000 of the consideration was paid in October, with GBP3.3 million due on the completion of the acquisition. The remaining balance of GBP1.5 million is due on or before April 30.
The company may elect to extend the deadline to complete the purchase to January 7, the long stop date. If InfraStrata chooses this option, it must pay GBP600,000, plus value-added tax, to fund maintenance costs at the shipyard.
By Eric Cunha; [email protected]
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