African Potash Limited ('African Potash' or 'the Company')
Placing to Raise £825,000 to Accelerate Expansion of Trading Operations
African Potash, the AIM listed exploration company focused on the vertical integration of fertiliser operations in Africa and sub-Saharan potash assets, announces a placing ('Placing') of 48,529,412 new ordinary shares in the Company ('Ordinary Shares') (the 'Placing Shares') at a price of 1.7p pence per share (the 'Placing Price') to raise gross proceeds of £825,000 with institutional and other investors. The funds raised will be used to improve local infrastructure to support the development of African Potash's revenue generative trading operations in line with the Company's strategy to become a vertically integrated fertiliser business focussed on Africa and for general corporate and working capital purposes.
African Potash Executive Chairman Chris Cleverly said:"Since turning our short-term attention to trading fertiliser and fertiliser constituents, African Potash has transformed itself from an early-stage exploration company into a business capable of capitalising on the immediate and critical need for fertiliser in sub-Saharan Africa, and in so doing, generating revenues and healthy margins - all within the space of six months. I believe our recent announcements detailing our first two fertiliser trades have demonstrated the potential financial rewards for moving into the fertiliser trading market, and it with this in mind that I announce today's placing, which will support the expansion of African Potash's trading operations.
"The funds raised will be used specifically to establish infrastructure to enable the Company to deliver further transactions with additional parties and in new territories. I look forward to providing further updates to shareholders in due course as we look to swiftly execute our expansion objectives and drive African Potash towards becoming an integrated supplier and trader of fertiliser and fertiliser constituents across Africa."
In connection with the Placing, Cornhill Capital Limited will receive 2,220,588 two-year warrants to subscribe for Ordinary Shares at the Placing Price.
The Placing is subject, inter alia, to admission of the Placing Shares to trading on AIM ('Admission'), which is expected to occur at 8 .00 a.m. on 25 January 2016. Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. The Placing Shares will, when issued, rank pari passu in all respects with the Company's existing Ordinary Shares.
Total Voting Rights
Following Admission, the Company will have 825,263,358 Ordinary Shares in issue. The Company has no shares in treasury, therefore the figure of 825,263,358 should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change of their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
African Potash is an AIM quoted company focussed on building a vertically integrated platform for the mining, production and distribution of fertiliser, primarily within Africa.
The Company has a trading agreement with the Common Market for Eastern and Southern Africa ('COMESA'), a free trade union for twenty African member states, to supply and deliver at least 500,000 metric tonnes of fertilisers on an annual basis to off-takers identified and introduced by COMESA.
The Company also operates the Lac Dinga Project in the Republic of Congo, which is prospective for potash, a key source of potassium fertiliser.
This information is provided by RNS
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