Alkemy Capital Raises £1.035 Million Through Discounted Placing
Why we think this is neutral
The equity raise at a significant discount to the company's recent share price suggests that the market may have concerns about the company's prospects or the need for additional funding. However, the proceeds will be used for the development of the company's lithium processing facilities, which are crucial to its business strategy. The dilution from the placing and the potential exercise of the warrants could negatively impact the value for existing shareholders, but the successful development of the company's projects could positively impact its performance and valuation.
Key Points
- Alkemy Capital Investments Plc raises £1.035 million through an oversubscribed placing of 828,000 new ordinary shares at £1.25 per share
- Net proceeds will be used to further the development of the company's lithium hydroxide processing facility in Teesside and for general working capital purposes
- Placing includes subscriptions from the company's directors, with Paul Atherley subscribing for £150,000, Sam Quinn subscribing for £75,000, Vikki Jeckell subscribing for £50,000, and Helen Pein subscribing for £10,000
- Placing shares and fee shares will be admitted to trading on the London Stock Exchange's Main Market on 24 February 2025
- Company has issued warrants to the subscribers, with one warrant for every two shares subscribed at an exercise price of £2 per share for two years from the date of issuance
Summary
Alkemy Capital Investments Plc has raised £1.035 million through an oversubscribed placing of 828,000 new ordinary shares at a price of £1.25 per share. The net proceeds will be used to further the development of the company's lithium hydroxide processing facility in Teesside and for general working capital purposes. The placing includes subscriptions from the company's directors, with Paul Atherley subscribing for £150,000, Sam Quinn subscribing for £75,000, Vikki Jeckell subscribing for £50,000, and Helen Pein subscribing for £10,000. The placing shares and fee shares will be admitted to trading on the London Stock Exchange's Main Market on 24 February 2025. The company has also issued warrants to the subscribers, with one warrant for every two shares subscribed at an exercise price of £2 per share for two years from the date of issuance.