LONDON (Alliance News) - Ncondezi Energy Ltd saw its shares plummet on Monday after it said it has only managed to raise GBP760,000 from an open offer that was announced in December, less than a quarter than the company's target.
Ncondezi shares were down 21% to 4.13 pence per share on Monday morning.
In December, the company said it was hoping to raise GBP3.4 million from the open offer to shareholders, which closed last Friday. The offer resulted in the company raising GBP760,000 after shareholders applied for 13.2 million shares at 5.78 pence per share. This represents only 22.29% of the shares offered under the open offer.
In addition, Director Michael Haworth has agreed to subscribe to 1.2 million shares and a trust of which he is a potential beneficiary has subscribed to a further 2.5 million shares. Following the transactions, Haworth is, in aggregate, interested in over 16.4 million shares, representing 6.58% of the total issued share capital in the company. Of Haworth's total shares, 3.5 million are held under the trust.
In December, Ncondezi said it raised about GBP3.2 million before expenses through a conditional share placing with Africa Finance Corp at the same price as the open offer, giving the multilateral development finance institution a 23.2% stake in the power development company.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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