(Alliance News) - Pembridge Resources PLC on Friday said it will reduce the number of shares to be issued under a previously announced subscription agreement as it exceeds the amount permissible under the stock listing rules.
The maximum amount permitted under the stock listing rules for standard listed companies is 20% of its current issued share capital.
Pembridge has 63.2 million shares in issue currently. Certain directors of the company have decided to surrender their stock options to maximise the amount of capital that can be raised through the equity issue.
Canada-focused miner Pembridge now expects to issue 11.2 million new ordinary shares at 3.3 pence each, resulting in a revised subscription of GBP368,000.
Previously, it planned to issue 19.2 million shares at 3.3p to raise GBP633,000. The balance of 8.0 million excess shares issued and allotted under the original subscription have been canceled.
Shares in Pembridge were down 12% at 2.75p each in London on Friday morning.
Chief Executive & Chair Gati Al-Jebouri said: "We have had to adjust the size of placing to ensure we are compliant with the prospectus regulation rules. Certain Directors have also agreed to surrender their options, thereby maximising the amount of capital that could be raised in the placing.
"Despite the reduced size the company remains in a stable financial position to meet any envisaged working capital requirements from existing cash resources and as yet undrawn loans".
By Tapan Panchal; tapanpanchal@alliancenews.com
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