Emmerson PLC late Monday said it raised £240,000 from a ‘significantly oversubscribed’ retail offer.
Emmerson is a resource development company, primarily focused on its wholly owned Khemisset potash project in northern Morocco.
The retail offer followed an earlier announcement that Emmerson also entered into a subscription agreement with Global Sustainable Minerals Pte Ltd and Gold Quay Capital Pte Ltd for $2.2 million worth of new shares.
The proceeds will go towards advancing feasibility studies at Khemisset.
GSM will subscribe for 90.7 million shares totalling $2.0 million, with GQC subscribing for 7.9 million totalling $175,000, both at a placing price of 1.75 pence per share.
This represents a discount of around 16% to Emmerson’s five-day volume weighted average price of 2.09p.
Shares closed down 16% to 1.85 pence each in London on Monday.
The investors will also receive one warrant per share to subscribe for additional shares, with an exercise price of 3p and an expiry date of December 31.
On completion, GSM’s shareholding in Emmerson will exceed 20%, granting it the right to appoint a representative to the company’s board of directors.
Mark Zhou, chief executive officer of GSM, said: ‘We are delighted to be able to demonstrate our commitment to Khemisset, which we believe is an outstanding project.’
Following admission of shares under the fundraises, which is expected on April 22, 1.14 billion Emmerson shares will be in issue for trading on AIM in London.
Earlier Monday, Emmerson said that it would be submitting amended environmental approval applications for its Moroccan potash project.
It said it will be resubmitting an environmental impact assessment for Khemisset to the Moroccan authorities, after its July application for environmental approval was met with concerns from the Moroccan investment commission.
Emmerson believes that the incorporation of the environmental optimisations into the design of the Khemisset project, including a reduction in water consumption and the elimination of brine disposal, ‘address the major concerns related to water identified by [the Moroccan commission].’
The assessment will be submitted in the coming days, Emmerson said, and the company will announce the outcome of the review in due course.
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