LONDON (Alliance News) - Edenville Energy PLC on Wednesday said it plans to raise GBP619,099 via an open offer of shares to expand its Tanzanian operations and pursue further acquisitions.
Shares in the company dipped 13%, trading at 0.10 pence each early Wednesday morning.
The company, which is developing a coal project in south west Tanzania, will issue up to 515.9 million shares at 0.12p each, on the basis of 1 open offer share for every 3 existing ones.
Non-Executive Chair Jeffrey Malaihollo said: "I believe the company has made great progress in moving from an exploration company to one that is producing and selling coal, whilst at the same time continuing to progress the longer-term goal of building a power plant. I and my fellow directors believe the current share price and market capitalisation of the company does not reflect this.
"We therefore believe it is important to seek authorities and support from our shareholders to allow the company to expand its coal mining operations in Tanzania and potentially seek other cash-flow generating, coal focused, opportunities in Africa."
The firm will hold a general meeting on February 15 to allow shareholders to vote on the open offer approval.
