Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

African Potash to raise £500,000 for fertiliser business

The firm is issuing over 235mln shares at 0.2125 pence each
African Potash is a fertiliser trading group

African Potash Ltd (LON:AFPO) is raising half a million pounds in a subscription and amending the terms of last year's bridging loan to pursue its fertiliser trading ambitions.

The firm is issuing over 235mln shares at 0.2125 pence each. Shares closed yesterday at 0.325p.

There is also an over-allotment option for a further 70.5mln shares,  exercisable at any time on or before November 24 this year.

In December last year, the AIM group agreed a £750,000 bridge facility with Katrina Clayton, the wife of chief financial officer, Neil Clayton. to meet its short-term working capital needs.

The amendment means the loan is now repayable on the earlier of: September 1 next year, the completion of equity financings after the Subscription which in total raise more than £1.5mln and the securing of any non-trade finance debt financing.

Clayton will receive an amendment fee of 5% of the total outstanding facility amount, which will be paid in cash from the proceeds of the subscription.

Executive chairman of AFPO Chris Cleverly said: "It is hoped that the funds raised at this time and the accommodation provided by the amendment to the existing bridge loan will provide the company with a solid platform from which to further grow our ambitious fertiliser trading programme. 

"Shareholders will be aware, from our recent announcements, of the traction which we are gaining in the market and we are confident that this funding will assist in revenue generation.  We are progressing with these initiatives and have others in the pipeline and will update the market accordingly as we progress."

Shore Capital, which has no recommendation on the stock,  ponders: "We wonder if the extension was necessary because more equity couldn’t be raised at a reasonable price to pay it off today as originally scheduled."

Shares shed over 30% to 0.225p on the day.

In-Depth - African Potash unveils second deal in less than a month

View full BLCC profile View Profile

Block Commodities Timeline

Related Articles

Woodsmith mine
April 01 2018
Tracking the readership of Sirius stories, we have seen their popularity wane as retail investors have been replaced by institutions that bought into November 2016’s US$495mln placing and open offer of new Sirius stock

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use