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(HERALD) LonZim raises US$1,5m for working capital

LonZim raises US$1,5m for working capital
Tuesday, 20 September 2011 02:00
Bright Madera Senior Business Reporter

AIM-listed investment company, LonZim Plc has raised US$1,5 million from Consilium Emerging Markets Return Fund for its working capital. The group secured the funding via a placing of 3 988 439 shares of 0,01 pence each at a price of 23 pence per share. These represent about six percent of the company's enlarged issued share capital.

A private placement is a funding round of securities, which are sold without an initial public offering, usually to a small number of chosen private investors.
LonZim told shareholders last week that the placement would provide working capital for the group's existing businesses and provide it with the ability to continue implementing its investment strategy.

"Consilium is a substantial shareholder in the company and therefore its participation in the placing is a related party transaction for the purposes of the AIM rules for companies,: said the company.

"Having consulted with WH Ireland, the nominated advisor to the company, the directors of the company consider the terms of Consilium's participation in the placing to be fair and reasonable in so far as all the shareholders of the company are concerned."

Following admission to trading on AIM, the company's total issued share capital will be 58 133 908 ordinary shares.

The Zimbabwe focused investment conglomerate, which has a primary listing in London, is expected to list on the Zimbabwe Stock Exchange to meet indigenisation requirements.

The firm's secondary listing on the ZSE was expected to be complete in the second half of the year.

Upon listing the firm's shares would have full fungibility on both stock markets.

Full fungibility refers to a situation where a listed company's shares are tradable and/or transferable between stock markets on which the firm is listed.

LonZim believes the proposed listing on ZSE will help strengthen its growth prospects and as a result maximise the value of the company and its shares for the benefit of shareholders.

The group also indicated that the proposed listing on the local bourse would facilitate direct investment in company by locals, local corporations and financial institutions and also support economic growth in line with the firm's objective of playing an integral role in the revival of the country's economy.

This would also provide LonZim with additional opportunities to access capital for growth, future expansion and the implementation of its existing plans.

Labels: LONZIM, ZSE

posted by MrK @ 2:35 PM