GreenX Metals Ltd (LSE:GRX, ASX:GRX) shares were pulled around 14% lower on Tuesday, pricing in dilution and the discount from a £3.9mln share placing, as the explorer seeks to advance programmes in Greenland.
Proceeds from the placing will also support working capital as the firm awaits a decision in its international arbitration versus the Republic of Poland, it noted in a statement.
The explorer said it has completed a bookbuild process and secured commitments from investors for a placing of some 12.4mln shares, priced at 31p each. The new shares are being taken up by new and existing UK and European investors and some Australian investors, it added.
GreenX said the placing funds and its existing cash position - it said it had A$2.6mln as of 31 December 2022 - will ensure the company “retains a strong balance sheet position.”
Aside from the arbitration, the company said it will spend the monies on exploration activities in Greenland and seek business development through identifying suitable opportunities in the resources sector.
In London, around 9:50am, GreenX shares had dipped 4.5p, or 10.3% though notably remain some distance above the agreed placing price, trading in the market at 39p per share.