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African Potash Ltd.: Placing to raise £400,000 and General Meeting

African Potash Ltd.: Placing to raise £400,000 and General Meeting

Thu, 16 Nov 2017 16:32:06
: African Potash Ltd.: Placing to raise £400,000 and General Meeting

African Potash Ltd. (AFPO)

16-Nov-2017 / 16:32 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

 

16th November 2017

 

AFRICAN POTASH LIMITED

("African Potash" or the "Company")

Placing to raise £400,000 and General Meeting

 

African Potash, is pleased to announce that it has secured funding of approximately £400,000 before expenses by way of a placing of new ordinary shares (the "Placing").

 

The proceeds from the placing will be used for working capital purposes, to further support and develop the Company's African fertilizer trading businesses and in preparation for the deployment of a proprietary 'eVoucher' payment system using blockchain technologyFurthermore, the Company will undertake a review of its strategy and corporate branding in Africa in relation to the utilisation of blockchain and how it will fundamentally change its supply chain and eVoucher scheme there. It will inform the market and shareholders once this is completed.

 

 

Pursuant to the placing the Company will issue:

  • 271,000,000 new ordinary shares (the "Initial Placing Shares") at a price of 0.025p each on 17 November 2017, raising approximately £68,000
  • 1,329,000,000 new ordinary shares (the "Subsequent Placing Shares") at a price of 0.025p each on or around 15 December 2017, raising approximately £332,000, subject to shareholder approval being granted to the relevant resolutions at the Company's General Meeting which will be held on 13 December 2017.

 

Chris Cleverly, Executive Chairman, said, "the Company has a short term working capital requirement and is looking to expand its African fertilizer trading capacity. This it intends to do through the deployment of a blockchain-based funding and financing solution. This will provide a secure payment mechanism (an eVoucher) for farmers borrowing to purchase fertiliser from the Company. It will also ensure the reimbursement of the Company and our funding partners."

 

 

Details of the Placing

 

The Company has conditionally raised £400,000 (before expenses) through the issue of 1,600,000,000 new ordinary shares of no par value, (the "Placing Shares") at a price of 0.025p per share (the "Placing Price") to new and existing shareholders.

 

Under the terms of these agreements the Company has also agreed:

To grant to advisors 200 million warrants to subscribe for new ordinary shares in the Company at a price of 0.025p per share, exercisable for a period of 5 years following the General Meeting.

 

Total Voting rights

The Initial Placing Shares will rank pari passu with the existing ordinary shares and will amount to 11.5% of the enlarged issued share capital of the Company immediately after they are issued on or around 17 November 2017.

Following the issue of the" Initial Placing Shares, in accordance with the Financial Conduct Authority's Disclosure and Transparency Rules, the Company will have 2,358,223,583 ordinary shares of no par value in issue each with voting rights.  The Company does not hold any shares in treasury.  The above figure of 2,358,223,583 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

The Directors of the Company accept responsibility for the content of this announcement.

 

**ENDS**

For further information visit www.africanpotash.com or contact the following:

 

For further information, please contact:

 

African Potash Limited

 

Chris Cleverly

+44 (0) 20 7408 9200

NEX Exchange Corporate Adviser:

 

Alexander David Securities Limited

 

David Scott - Corporate Finance

+44 (0) 20 7448 9820

James Dewhurst - Corporate Broking

+44 (0) 20 7448 9820

 




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