Emmerson PLC (AIM:EML) has raised £0.85 million through an oversubscribed placing and subscription at 0.65p with specialist international litigation investors providing the core of the funds.
The cash will provide working capital while it assesses the options in its dispute with the Moroccan government over the Khemisset potash project.
Emmerson started legal action after its application for an environmental permit for Khemisset was rejected.
Hayden Locke, Emmerson’s chairman, commented: "The Government of the Kingdom of Morocco has failed to respond to our notice of dispute.
“Accordingly, working with our specialist arbitration legal team, Boies Schiller Flexner, we have presented our case to funders of potential arbitration claims and have received significant interest."
"As we expected, the merits present extremely well with these litigation experts, and we are aiming to close our funding agreement as soon as we possibly can.
“Given the complete lack of engagement, we expect to request arbitration via ICSID."
"A core group of investors, which were involved in the recent, successful, GreenX arbitration victory over the Polish Government, are taking up a position in this capital raise.
“These investors are well-versed in international arbitration and have worked extensively with our legal counsel. They share our view on the strength of our case."
Warrants exercisable at 3p per share and running for seven years were also attached to the shares issued.
Locke plus two other directors, Robert Wrixon and Graham Clarke, contributed £0.02 million to the funding round.