LONDON (Alliance News) - Nektan PLC said Monday it will raise up to GBP2.9 million in a share offer and subscription, which it will use to support the growth it is seeing in Europe and in its US joint venture.
The company said it has received commitments from new and existing investors, including directors, to raise up to GBP2.9 million. This includes a subscription for GBP2.6 million of new convertible loan notes. Subscribers to the convertible loan notes also will receive 1 warrant over a new share at an exercise price of 81.75 pence for every GBP1 invested, resulting in the issue of up to 2.56 million warrants.
Nektan also a firm subscription for 358,024 shares with an institutional investor, raising around GBP290,000 at an issue price of 81 pence.
Shares in Nektan were down 2.1% at 80.00 pence Monday morning.
Finally, the mobile gaming content provider intends to offer up to GBP300,000 of convertible loan note units for subscription. The company said that, since a maximum of GBP2.6 million is available to be issued under its current loan note instrument, this offer will raise just an additional GBP83,309. To the extent that applications exceed this amount, the subscribers will be scaled back, Nektan said.
The subscriptions and the offer are subject to approval from shareholders at an extraordinary general meeting to be held on or around March 29. Ahead of this meeting the company is looking to use its remaining existing shareholder authority to issue up to GBP550,000 of the convertible loan notes subscribed for to some key investors over the next few weeks.
"We welcome the continued support of our major shareholders and convertible loan note holders. We have continued to make good progress on achieving cost efficiencies in the business and this fundraising puts in place additional working capital to support the strong growth we are seeing in Europe and in our US JV," said Chairman Jim Wilkinson in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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