LONDON (Alliance News) - Pires Investments PLC Monday said its convertible loan note has been converted into about 3.0 million new shares in Rame Energy PLC, which it said would realise GBP547,000 at Rame's initial public offering price of 18 pence.
In addition, Pires said it subscribed for another 308,233 new shares as part of Rame's IPO.
Pires said it has a 3.5% interest in Rame's issued share capital, as well as a warrant that allows it to subscribe for up to 125,000 new shares in the company at the IPO price until February 2017.
Pires detailed the pre-IPO three-year convertible loan note of GBP410,000 on February 10.
"I believe that investing in pre-IPO opportunities such as Rame provides Pires' shareholders with a value enhancing opportunity. The board continues to seek similar opportunities with the objective of increasing shareholder value and believes that Rame's successful IPO within two months of Pires making its investment illustrates the potential of its investment policy to provide positive returns for shareholders."
Rame began trading on Friday. It was Monday quoted at 18.65 pence, down 1.8%.
Pires shares were Monday quoted at 0.0674 pence, up 12%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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