LONDON (Alliance News) - Armstrong Ventures PLC on Monday said it has raised GBP2 million after expenses by issuing new shares, as it decided to switch its focus to investing in the media, technology and healthcare sectors instead of the resources sector.
In a statement, the investing company said it has raised GBP2.3 million before expenses by issuing 19.40 billion new shares to new and existing investors at a placing price of 0.012 pence per share.
Sean Nicolson, executive director of drug discovery company e-Therapeutics PLC, has been appointed to the board along with former KPMG partner Peter Read.
The decision to invest in the media, technology and healthcare sectors came after Chairman Haresh Kanabar said earlier on Monday that the general market conditions have been difficult for small AIM-listed companies focused on the resources and energy sectors.
"The board has looked at a number of possible acquisitions for the company, but none were suitable to be tabled for the consideration of the shareholders. A greater proportion of the possible transactions that we looked at required funds to be raised as part of the acquisition, and there has not been market support for such fund raisings in our focused sector. The outlook for market conditions in the resources and energy sectors continues to be challenging, and we do not see any improvement in the near term horizon," Kanabar said earlier on Monday.
Armstrong Ventures said it was "hopeful" about the future, despite operating against tough conditions, which it doesn't see improving in the near term.
"As I have indicated before, the operating environment for small investing companies such as ours continues to be challenging, but we remain hopeful for the future," Chairman Haresh Kanabar had said.
The investing company recorded a loss before and after tax of GBP184,079 in 2014, compared with GBP262,406 in 2013.
Shareholder approval is required for the new investing policy.
Armstrong Ventures shares were down 25% on Monday morning at 0.015p.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
