Obtala Brings In Hong Kong Investor Willing To Pay Large Premium (ALLISS)

LONDON (Alliance News) - Obtala Ltd on Tuesday said it has raised GBP4.0 million by issuing new ...

Alliance News 28 March, 2017 | 10:54AM
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LONDON (Alliance News) - Obtala Ltd on Tuesday said it has raised GBP4.0 million by issuing new shares to a company owned by a high net worth investor in Hong Kong and said it has issued warrants that would raise a further GBP4.0 million if exercised.

Obtala shares were up 5.0% on Tuesday at 18.50 pence per share.

Obtala, an agricultural and forestry business, said it has entered into a conditional subscription agreement to issue 20.0 million new shares at 20.0 pence each to Wealth Rank Ltd, with the price representing a 13% premium to the closing share price on Monday.

The subscription is expected to close on May 2, and the new shares represent about 7.2% of the existing issued share capital of the company.

A further 20.0 million warrants have been issued to the same company at an exercise price of 20.0 pence to possibly raise a further GBP4.0 million before September 27, 2018. Any exercise must be in multiples of 5.0 million shares.

The investment comes one day after Obtala said "intense planning" is underway for several major projects as the company transitions towards meaningful production from both its Forestry and Agriculture businesses.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Obtala Ltd 16.63 GBX -1.48 -
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