(Alliance News) - Mineral exploration and development company Kodal Minerals PLC said on Monday it has raised GBP250,000 through a share placing and subscription.
Shares in Kodal were down 12% at 0.0553 pence each on Monday.
The fundraise comprised a placing and subscription of 250.0 million shares at a price of 0.05p each, as well as the placing out of the 250.0 million shares allotted to SVS Securities PLC.
As previously noted, SVS went into special administration in August and subsequently defaulted on its contractual commitment to pay for the shares. The SVS shares were issued and admitted to trading on AIM in August but not delivered to SVS, and have remained under the control of the company.
"The company will seek to recover from SVS the shortfall between the price at which the SVS shares have now been placed of 0.05 pence per share and the original price which SVS contracted to pay of 0.08 pence per share as well other costs incurred by the company as a result of SVS's default," Kodal said.
By Lucy Heming; lucyheming@alliancenews.com
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Kodal Minerals (KOD)