News Column

AfriAg Shares Fall As It Raises GBP400,000 In Discounted Placement

June 11, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - AfriAg PLC shares fell Wednesday after the company said it raised GBP400,000 through a discounted placement of 100 million new shares.

ArfiAg shares dropped 19% to 0.405 pence Wednesday morning, the biggest faller on AIM, bringing them close to the placement price 0.40 pence per share.

The company said it will use the proceeds to strengthen its balance sheet and provide working capital to investigate acquisition and investment opportunities.

The subscription shares represent 8.65% of the enlarged issued share capital of the company.

"Since the creation of AfriAg a year ago, the company has only raised a net GBP600,000 to rescue the business, which was scheduled for de-listing from AIM, pay out old outstanding creditors and invest in a number of Agri related businesses," said Chairman David Lenigas in a statement.

"This new funding has been secured to enable the company to continue with its stated investment policy," he said.

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Source: Alliance News

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