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Khot Infrastructure

Khot arranges $1mln financing; names Chutter COO

Snapshot

Khot Infrastructure proposes to conduct a non-brokered private placement to raise $1mln and appoints Ms. Erin Chutter as Chief Operating Officer

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Quick facts: Khot Infrastructure

Price: £0.00

Market: CSE
Market Cap: £0.00
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Transport group Khot Infrastructure Holdings Ltd (CNSX:UTM) unveiled plans to raise up to $1mln in a placing to advance its activity in Mongolia and revealed it had appointed a new chief operating officer.

The group recently announced the acquisition of important licences in rail bed and road construction and expects approval shortly for a power line construction licence.

The private placing will see the firm issue up to 10 million units at 10 cents each for total gross proceeds of up to $1-million.

Each unit will consist of one common share and one-half a warrant, with a whole warrant entitling the holder to buy one share at 20 cents for 12 months following the closing date.

Khot's  Mongolian subsidiary is AMZ, which has a joint venture with major Chinese contractor Sepco III, which is actively seeking road-building opportunities.

The company is also in discussions with a large international infrastructure and finance specialist that is seeking a continuing relationship with AMZ.

It said the proceeds of the fundraise would be used to build on its infrastructure activities over the last six months and for a rapid expansion of the strategic business plan.

"Management recognizes that the sheer size and scope of this opportunity require very careful and strategic relationship building.

"The company is pleased to report this process is progressing very positively and the company anticipates being able to shortly provide more specific information.

"The appointment of Erin Chutter as chief operating officer of the company will allow for active engagement with the various financing, infrastructure partners and other critical parties.

"Ms. Chutter's background as an experienced business professional with significant operating experience in central Asia and China will assist in finalizing various high-value concession opportunities," said the group, adding she had been a director of Khot since April last year.

Notably, the firm added that it plans to be financed by project debt at the subsidiary level, so the need for additional equity should be relatively small and the resulting dilution modest.

The Mongolian government has committed to building 10,000 kilometres of new roads over the next ten years. This, combined with a significant rail expansion program, will result in one of the fastest growing industries in Mongolia.

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