LONDON (Alliance News) - Alecto Minerals PLC shares dropped on Tuesday morning after the company launched a substantial share placing priced at a discount.
Alecto said it plans to increase its share capital by 18.6% by conducting the placing, which is priced at a 23% discount to the stock's closing share price on Monday.
The company plans to issue 831.3 million new shares priced at 0.08 pence each to new and existing shareholders, which will raise GBP665,000 to allow work to continue at the Matala gold project in Zambia.
Alecto shares were down 20% to 0.0840 pence per share on Tuesday morning.
Importantly, Alecto is currently in the close period under AIM rules, meaning directors are not allowed to participate in any placings. Alecto said Chief Executive Mark Jones plan to buy 12.5 million new shares made available under the placing once he is allowed, investing a total of GBP10,000 in the company.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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