Mercantile Ports & Logistics Ltd - Indian port and logistics facility developer and operator - Says it to raise a minimum of GBP9.5 million via subscription and a conditional share placing. Placing price of 0.45 pence is an 18% discount to Wednesday's closing price of 0.55p. Further, company is seeking to raise additional funds via PrimaryBid in order to provide other investors who may not have taken part in the placing, with an opportunity to participate in the fundraising.
Company says will use the funds raised to fund the servicing of new and existing contracts, the construction of further storage facilities, debt servicing and general working capital purposes.
Mercantile also entered an unsecured loan facility of GBP4.4 million with Hunch Ventures and has also proposed a share consolidation on a basis of 100 existing shares into 1 consolidated share.
Jeremy Warner-Allen, chair of Mercantile, says: "I have been delighted with the support shown from our institutional shareholders in supporting the company in this fundraise. Particular thanks is given to Hunch Ventures for their continuing support in our vision for the facility and their presence as a strategic shareholder.
"In addition to Hunch's significant investment in the company, the provision of a GBP4.4 million unsecured loan underscores the confidence they have in our team at MPL and the opportunities available to the company as the facility becomes operational."
Current stock price: 0.55p
Year-to-date change: up 42%
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Mercantile Ports & Logistics (MPL)