Natural resources investor Metal Tiger (LON:MTR) has raised £175,000 though a strategic share sale.
Metal Tiger revealed it has sold nearly 20mln new shares, priced at 0.875p, the mid-market price (at the time), to high net worth individual investors who expressed an interest in directly supporting the company’s activities.
The proceeds will allow the AIM quoted group to expand further its own investing activities particularly within its Direct Project division, the company said.
"Metal Tiger is in the fortunate position of having a material amount of working capital with which to pursue its investing activities through both its Direct Equities and Direct Projects divisions,” said chief executive Cameron Parry.
Parry highlights that via its equities division it has generated sufficient working capital to be self-financing currently; nevertheless, he said the addition of the new investors would be beneficial to the group.
“The board considered that it would be beneficial to add these investors to the company's share register and that, subject to acceptable terms, the additional funding would enable Metal Tiger to expand and accelerate its plans.
“As a result we have agreed a placing at the mid-price at the time the transaction was agreed, and structured this in a similar manner to which Metal Tiger has itself invested in other AIM companies.”
As part of the share subscription the new investors are being issued warrants for a further 19.9mln new shares. The warrants can be exercised within a year of issue at a price of 1.75p each.