Funds for stock repurchase, exploration of licenses, working capital
By Marisa Wong
Madison, Wis., Jan. 13 - Ncondezi Coal Co. Ltd. placed 12 million new ordinary shares with institutional and other investors to raise £23.4 million, according to a company news release.
The placing shares priced at 195p each. The placing price is equal to a 4.4% discount to the closing mid-market price of the company's shares on the AIM market of the London Stock Exchange on Jan. 12.
Liberum Capital Ltd. is the broker, bookrunner and placement agent.
The placing shares represent approximately 10% of Ncondezi's issued share capital prior to the placement.
The new ordinary shares are expected to be admitted to trading on Jan. 19 and on Jan. 28 for uncertificated and certificated shares, respectively.
Proceeds will be used to repurchase existing shares held by a pre-initial public offering shareholder, for exploration and development of the company's two additional licenses, for funding toward logistics studies on rail and port solutions and for general working capital purposes.
"This transaction is accretive to shareholders as it provides Ncondezi with significant additional funding to pursue its exploration strategy whilst slightly reducing the issued share capital of the company," Graham Mascall, chief executive officer of Ncondezi, said in the release.
Ncondezi is a British Virgin Islands-based coal exploration and development company with four exploration and prospecting licenses in Mozambique.
| Issuer: | Ncondezi Coal Co. Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | £23.4 million
|
| Shares: | 12 million
|
| Price: | 195p
|
| Warrants: | No
|
| Bookrunner: | Liberum Capital Ltd.
|
| Pricing date: | Jan. 13
|
| Stock symbol: | London: NCCL
|
| Stock price: | 204p at close Jan. 12
|
| Market capitalization: | £255.59 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
