LONDON (Alliance News) - Weatherly International PLC saw its shares fall in early trade on Monday after the company said it has agreed a share subscription deal with fellow AIM listing Polo Resources Ltd in order to raise GBP900,000.
Weatherly said it will issue 30.8 million shares at 2.925 pence per share to Polo, a sharp discount to its opening price of 3.75 pence per share on Monday.
Polo has also committed to subscribe to a further 76 million Weatherly shares at the same price in order to raise around GBP2.2 million.
Along with the Polo subscription, Weatherly said it intends to raise another GBP3.8 million through a 4 for 19 offering of approximately 129.8 million shares at the same issue price to its existing shareholders.
The news sent shares in Weatherly lower in early trade Monday, down 16% to 3.16 pence. Polo Resources shares were down 1.8% at 8.15p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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