LONDON (Alliance News) - Mercantile Ports & Logistics Ltd said Friday it is still awaiting approval from India' central bank to receive the GBP8.3 million Hunch Ventures & Investments Private Ltd subscribed for in the company's recent placing.
In November, the port and logistics facilities operator raised GBP29.8 million via a share placing, a subscription, and an open offer. As part of the fundraising, Hunch Ventures subscribed for GBP8.3 million.
As Mercantile Ports & Logistics wants to hold the funds of the placing in its bank account in Guernsey, the Indian central bank must approve of the transaction - which it has not yet done.
Mercantile Ports & Logistics stressed that Hunch "has for some time been in a position to transfer the funds".
In order to confirm its commitment, Hunch has entered into an escrow agreement with Mercantile Ports & Logistics' subsidiary, Karanja Terminal & Logistics Private Ltd, to transfer the subscription into an escrow account. The amount will then be transferred to Mercantile Ports & Logistics account in Guernsey once the Indian central bank has approved the process.
At the time of the placing, Mercantile Ports & Logistics said the cash raised will be used to partially substitute undrawn banking facility, pay accrued bank interest and other outstanding liabilities, along with the continued construction and completion of a port and logistics facility near Navi Mumbai in India.
Shares in Mercantile Ports & Logistics closed up 0.6% Friday at 2.46 pence each.
Mercantile Ports & Logistics (MPL)