Business
Equity Placing and Corporate Update
Equity Placing and Corporate Update.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 3827W Xtract Resources plc 14 November 2017 \n\nFor immediate release\n14 November 2017\n \nXtract Resources Plc\n(\"Xtract\" or the \"Company\")\nEquity Placing\nCorporate Update\nTotal Voting Rights\n \nPlacing\nThe Board of Xtract Resources Plc (\"Xtract\" or the \"Company\") announces that the Company's Broker, Beaufort Securities, has today conditionally raised £1,700,000 (before expenses) following the placement of 59,649,140 new Ordinary Shares of 0.02p each (\"Ordinary Shares\") at 2.85p (\"Placing Price\") per new Ordinary Share (the \"Placing\"). The new Ordinary Shares represent 20.50% of the current issued ordinary share capital of the Company. The Placing Price is at a discount of approximately 8.5% compared to the 5 day volume weighted average price of 3.12p for the period ended 13 November 2017. In completing the Placing the Board has utilised the waiver of pre-emption rights provided by shareholders at the last Annual General Meeting.\n \nThe net proceeds from the Placing (amounting to £1,530,000 after direct expenses) will be utilised by the Company to pay off outstanding debt of £530,000 and to take advantage of commercial opportunities offered in the Manica area and elsewhere.\n \nBackground to the Placing\nThe Board stated earlier this year that it is acutely aware of the impact of dilution on shareholders and will make every effort to limit future dilution and, in the event that it is practicable and cost effective to do so, give full consideration to ways in which shareholders can participate in any future fund raisings. The Company had considered whether it would be feasible to offer shares on similar terms to shareholders by means of a pre-emptive issue, but understands that the placing funds would not have been available on the terms offered and in the timescale envisaged if combined with a pre-emptive offering. The Board fully considered the offer of funding and has taken into account the uses to which the funds being raised could be put and whether in its view there are sufficient commercial advantages for the development of shareholder value to taking the funding now. The Board further considered the terms and quantum of the funding offered, which was initially in excess of £1.8 million. Given that pre-emption could not be combined with the Placi...