Business
Proposed Placing and Open Offer
Proposed Placing and Open Offer.
About this update from Iofina Plc
[{"type":"text","content":"\n \nRNS Number : 4824Z Iofina PLC 20 May 2019 \n\nTHE INFORMATION COMMUNICATED IN THIS ANNOUNCEMENT IS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 596/2014.\n \n20 May 2019\n \nIofina plc\n(\"Iofina\", the \"Group\", or the \"Company\")\n(LSE AIM: IOF)\n \n \nConditional Placing, Subscription and Open Offer to raise gross proceeds of up to £7.5 million\n \nNotice of Annual General Meeting\n \nIofina, specialists in the exploration and production of iodine and manufacturers of other halogen-based derivatives at its specialty chemical company, today announces a proposed conditional placing, subscription and open offer (together the \"Fundraising\") to raise gross proceeds of up to £7.5 million at 16 pence per share.\nThe net proceeds of the Fundraising will enable Iofina to accelerate its plant upgrading programme, which in turn will increase iodine production and sales, as well as reduce the Company's debt.\nThe Directors intend that the net proceeds of the Fundraising will be used primarily for the following purposes:\n· Accelerate the development and construction of the IO#8 iodine processing plant;\n· Extinguish the Company's $3.26m term loan facility;\n· Complete upgrades at its other plants, which will increase iodine production; and\n· Investment in new product development at Iofina Chemical.\nIn connection with the Fundraising, one of the Company's secured lenders, Southern Rock Insurance Company Limited (\"SR\"), has agreed, subject to the passing of the Resolution approving the issue and allotment of the Placing Shares and the Subscription Shares (the \"Condition\"), to convert 75 per cent. of the total debt owing to it under the Loan Notes 2020 into ordinary shares in the capital of the Company (the total debt amounting to approximately US$5,592,986). Subject to the Condition being satisfied, the amount which shall be converted by SR is approximately US$4.19 million, and the conversion will be effected by the issue by the Company to Southern Rock of the Debt for Equity Shares at the Issue Price.\nThe Directors are unanimous in wanting to ensure that all of the Company's existing shareholders have the opportunity to participate in the Fundraising. The Directors scaled back the potentia...