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LONDON (Alliance News) - Iofina PLC on Monday launched a placing, subscription and open offer of shares targeting to raise up to GBP7.5 million.
The iodine manufacturer said the offer will be priced at 16 pence per share. Iofina shares were trading down 4.8% at 17.64 pence each.
"The net proceeds of the fundraising will enable Iofina to accelerate its plant upgrading programme, which in turn will increase iodine production and sales, as well as reduce the company's debt," the firm explained.
In connection with the fundraising, one of the firm's secured lenders, Southern Rock Insurance Co Ltd, has agreed to convert 75% of the total debt owing to it under the Loan Notes 2020 into ordinary shares in the capital Iofina.
Chief Executive Officer Tom Becker said: "Given complex market conditions, we believe that it is in the best interests of shareholders as a whole to conclude this oversubscribed placing. The directors have been vocal and unwavering in that our supportive and current shareholders have the opportunity, through the open offer, to participate in this fundraising and allow all investors to partake in the company's bright future."
He added: "The strengthening iodine prices and demand makes it an opportunistic time to execute on our expansion plans. We have identified areas for growth and will utilise the new funds to fast-track investment in new plants, as well as to upgrade existing plants, which will increase iodine production and further enhance cost control measures."
