LONDON (Alliance News) - Minoan Group PLC said Friday it has received shareholder approval to issue 117.4 million shares to "strengthen its balance sheet and reduce debt".
The luxury resort developer will issue 32.2 million shares from the firm subscription by existing creditors of the company, raising GBP98,000 in cash and releasing GBP787,500 in debt.
The shares were priced at 2.75 pence. Following admission, the company will have 404.9 million shares in issue.
Shares in Minoan were up 3.1% Friday afternoon at 2.63 pence each.
Minoan has received valid acceptances to issue 8.7 million shares in connection with its open offer, raising GBP239,858.
The company will issue 55.2 million shares from its conditional subscription - for GBP1.5 million - which will cover the clawback to satisfy valid applications from qualifying shareholders. Minoan will issue 21.3 million shares in a directors debt for equity swap.
"I am delighted at the over 99% support received from our shareholders for the resolutions at the general meeting today in support of the subscription and open offer announced on April 24 which allows us to strengthen our balance sheet and move forward with confidence with our plans for the development and crystallisation of value to our shareholders of our Crete project," said Chair Christopher Egleton.