Vanadium producer Ferro Alloy Resources Ltd (LON:FAR) said chief executive Nick Bridgen sold 16.67mln shares in the company, via a placing priced at 30p per share, raising gross proceeds of about £5mln.
Bridgen sold 15mln shares for his own account and 1.67mln on behalf of the company’s operations director Andrey Kuznetsov.
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The placing was undertaken by Bridgen as part of a previously announced divorce settlement to his ex-wife. The company will not receive any proceeds.
New major shareholder Vision Blue Resources, the vehicle of former Xstrata boss Mick Davis, was said to be supportive of the sale. The shares were placed with new and existing institutional shareholders.
Following completion of the placing, Bridgen will hold about 14.5% of the company’s issued shares and Andrey Kuznetsov will have about 20.0%.
The placing was conducted through an accelerated bookbuild. Shore Capital Stockbrokers Ltd and VSA Capital Group Ltd acted as joint bookrunners.
The balance of the shares held by Bridgen and Kuznetsov will be subject to a lock-up which ends 180 day after completion of the placing. Bridgen and Kuznetsov have also agreed to enter into a 12-month lock-up with Vision Blue Resources, which will start on the completion of an initial Investment by VBR as defined in the announcement by Ferro Alloy Resources on March 15.