LONDON (Alliance News) - Atlas Development & Support Services Ltd Monday said it plans to raise USD5.0 million through a placing to fund its work programme in Ethiopia.
The company said it plans to issue the shares at a price of 0.325 pence per share, and based on current exchange rates Atlas will be aiming to raise around GBP3.45 million, suggesting it would need to issue around 10.6 million shares to achieve its target.
To put that into perspective, Atlas Development has just over 433.0 million shares in issue prior to the placing revealed Monday.
Atlas Development shares were down 7.7% to 0.300 pence per share on Monday.
The placing is being conducted through a bookbuilding process which has been launched immediately and will close later Monday, it said.
"The proceeds of the placing will be used to fund a full feasibility study for the company's Chancho project in Ethiopia, a new state-of-the art glass manufacturing facility 45 kilometres north of the capital, Addis Ababa, as well as initial construction works," said the company.
Atlas Development said USD1.5 million of the proceeds will be used to break the ground and construct the ancillary buildings at the project whilst a further USD1.5 million will be used for deposits on long-lead items. The other USD1.0 million has been earmarked for paying engineering consultants and for the feasibility study.
Atlas Development said it will hold a general meeting on March 10, where shareholders will vote on whether the company should change its name to Atlas African Industries Ltd.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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