Kropz Begins Life On AIM After Raising GBP27.3 Million In IPO (ALLIPO)

LONDON (Alliance News) - Kropz PLC on Friday started trading on the AIM market of the London ...

Alliance News 30 November, 2018 | 8:53AM
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LONDON (Alliance News) - Kropz PLC on Friday started trading on the AIM market of the London Stock Exchange after raising GBP27.3 million in a share placing.

Kropz is a plant nutrient producer with phosphate mining projects in South Africa, Congo and Ghana. It said that its "vision" is to become a phosphate rock producer and to develop into a mine-to-market plant nutrient company.

The company placed 68.4 million shares at 40 pence each, securing a market capitalisation of GBP96.1 million. After admission, Kropz has a total of 240.2 million shares, of which 15% in public hands.

Kropz shares were untraded at 42.50p on admission.

The net proceeds of the fundraising will be used to complete the upgrade and commissioning of Kropz's flagship Elandsfontein phosphate project in South Africa.

It will also use the funds to de?ne the programme for the development of the Hinda phosphate project in the Republic of Congo and to reduce debt.

At the beginning of November, Kropz said it would acquire in an all-share USD40 million offer Cominco Resources Ltd, which through its subsidiary, Cominco SA, owns the Hinda project.

On admission, Kropz bought 71.3% of Cominco with the offer still open for acceptances until later on Friday.

Chief Executive Officer Ian Harebottle said: "We are pleased to have raised gross proceeds of GBP27.3 million despite the recent volatility across the global stock markets.

"We're also delighted to announce the acquisition of a majority shareholding in Cominco which owns the Hinda phosphate project in the Republic of Congo. Hinda is believed to be one of the world's largest, undeveloped phosphate reserves with a positive definitive feasibility study published in 2015."

Grant Thornton UK LLP acted as nominated adviser and H&P Advisory Ltd and Mirabaud Securities Ltd as joint brokers.

By Elena Cherubini; elenacherubini@alliancenews.com

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