LONDON (Alliance News) - Metal Tiger PLC said Tuesday that it has raised GBP1.6 million through a placing and subscription of shares in the company.
The AIM-listed natural resource investor said it placed approximately 106.0 million new shares at a price of 1.5 pence per share, raising gross proceeds of GBP1.6 million.
Additionally, the company issued 106.0 million warrants to subscribe for individual shares at an exercise price of 2.0p each, within a 12-month exercise period.
Shares in Metal Tiger closed up 1.6% at 1.55p Tuesday.
Metal Tiger directors participated in the placing, with Chairman Charles Hall taking 2.0 million shares for GBP30,000, Chief Executive Officer Michael McNeilly subscribing for 666,666 shares for GBP10,000 and Non-Executive Director Paul Johnson subscribing for 1.7 million shares for GBP25,000.
The company said it believes investors have been focused on "corporate events surrounding Metal Tiger" since late November, when it rejected a takeover bid from BMR Group PLC. Metal Tiger added it believes its current market capitalisation is undervaluing its current projects, and said the funds will be used for their development rather than in its Asset Trading division.
"This funding places Metal Tiger in a strong position and enables the company to further develop its Metal Projects division and explore value generative commercial transactions. The fund raise is the largest single sum raised by the company and I am very pleased with the continued and new support we received from existing and new shareholders," said Michael McNeilly, chief executive of Metal Tiger.
By Adam Clark; adamclark@alliancenews.com
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