Listed AIM Entity Seeking Equity Funding

Key Data

Location: UK, Australia and South Africa

Sector: Natural Resources

Status: Completed

The Story In Stats

£15m

Market capitalisation pre-engagement

£3m

Equity raised

£50m

Market capitalisation 6 months post engagement

Salonica was approached by an AIM listed mining company that was seeking working capital funding in order to operationalise mining assets they had in Australia and South Africa.

Prior to on boarding the company as a Client, Salonica undertook due diligence on the company to ensure the viability and commerciality of their operations. Such a process was also completed in order to give our pool of investors an additional layer of surety with respect to the medium term prospects of the Company.

Once we were satisfied, we calculated the working capital requirement, which was in the region of £3m, and thereafter priced and structured an equity injection which would satisfy both the listed company and investors. We agreed upon an initial secondary placement raise of circa £1.25m followed by issuing warrants (at a premium to the raise price) in order to ensure medium term interest in the company.

This was successfully completed, and the fundraise was significantly over subscribed. We were able to raise a total of circa £2.5m into the listed entity, the net effect of which, was to increase the market capitalisation of the entity from circa £15m at the time of raise to circa £50m 6 months post raise. The entity has been able to maintain its share price and market capitalisation without further dilution of existing shareholders, while ensuring a significant return for investors.

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