(Alliance News) - InfraStrata PLC said Friday that it intends to raise GBP9.0 million through a share placing, the proceeds of which will go towards building up the company's balance sheet and allow it to tender for larger contracts.
The natural gas storage project developer will issue 2.57 billion shares at a price of 0.35 pence to existing and new investors. The issue price reflects a 10% discount to InfraStrata's closing price of 0.39 pence on Thursday.
Shares in InfraStrata were down 5.9% at 0.37 pence on Friday in London.
As well as strengthening balance sheet, proceeds from the placing will also go towards paying for the final tranche of deferred consideration for the Harland & Wolff acquisition, and pay down smaller bridging loans.
The placing will be conducted in two tranches, with the first using InfraStrata's existing authority to issue shares, and the second tranche subject to shareholder approval at the annual general meeting on July 26.
In addition, the company has proposed a share consolidation of every 100 existing shares into one new shares.
Following the consolidation, and should the first and second tranches take place, InfraStrata will have 64.2 million shares issued overall.
"We are delighted with the strong support we have received from institutional investors. This is testament to the significant growth opportunities available to our company on the back of our acquisition of the iconic Harland & Wolff shipyard, which is home to the UK's largest drydock. With numerous facilities currently closed globally due to the global pandemic, we have experienced unprecedented demand to use our drydock and are therefore gearing up for a period of significant activity," said Chief Executive Officer John Wood.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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