LONDON (Alliance News) - Pires Investments PLC said Wednesday it has raised GBP525,000 from a placing of 17.5 million new shares in the company.
Pires said the shares were placed to third party investors at 3 pence, a 20% discount to their mid-market closing price of 3.75p on Tuesday. Shares in Pires were down 18% at 3.09 pence Wednesday afternoon.
Pires also noted that placees will receive one warrant for every two placing shares subscribed for, with an exercise price of 4.25p each and an exercisable period of 18 months from the date of issue.
Following admission, the total number of shares in the company will be 28.9 million.
"The proceeds of the placing are to be used to provide the company with additional funds for working capital and investments," said Pires.
In a separate statement later on Wednesday, Paternoster Resources PLC said it had subscribed for 5 million shares in Pires for a total od GBP150,000. As part of this investment, it will also received 2.5 million warrants.
This leaves Paternoster with a 17.3% stake in Pires following the admission of the placing shares.
"This investment provides Paternoster with a significant interest in an AIM listed company with a cash balance at an attractive valuation," said Chairman Nicholas Lee in a statement.
By Adam Clark; adamclark@alliancenews.com
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