African Battery Metals Ltd (LON:ABM) shares resumed trading on AIM on Monday after shareholders last Friday approved a refinancing placing and share subscription by the group.
The exploration company's shares were temporarily suspended in December, pending clarification of the company's financial position, as the group said then that despite "protracted discussions" with its largest shareholders, the firm was unable to secure equity finance from its shareholders on any terms.
READ: African Battery Metals announces refinancing as it readies for strategic review
However, at a general meeting held on Friday, ABM shareholders almost unanimously approved resolutions to raise £1mln via a placing of 200.0mln shares at 0.5p each.
ABM had said the refinancing would allow it to pay all of its material creditors through a mixture of cash and shares and to become essentially debt free with a “robust” cash position for at least 12 months of operation.
Following the passage of the resolutions, ABM also said its chief executive, Roger Murphy, and executive director Matt Wood would step down from the board, while Andrew Bell would be appointed executive chairman and Paul Johnson as executive director.
Both Bell and Johnson had committed to subscribe £50,000 in the refinancing, while Red Rock Resources PLC (LON:RRR), where Bell is a director, had committed to subscribe for £100,000.
In early trading on Monday, African Battery shares were trading at 0.65p, above the 0.5p placing price, but around half the 1.35p level they were when trading was suspended.
-- Adds share trading resumption, price --