Nativo Resources Announces Equity Issue
Why we think this is neutral
The equity raise by Nativo Resources appears to be a relatively neutral event, with both positive and negative factors to consider. While the raise is being conducted at the current market price without a significant discount, the small raise size and dilution from convertible note conversion are offsetting factors. Overall, the announcement does not indicate any major funding pressures or concerns for the company.
Key Points
- Nativo Resources announces issue of 27,034,414 new ordinary shares
- Raise of £52,500 through conversion of convertible loan notes
- New shares to be admitted to trading on AIM on or around 1 July 2025
- Raise conducted at current market price of 32.5p per share, with no discount
Summary
Nativo Resources plc (LON:NTVO) has announced the issue of 27,034,414 new ordinary shares following the conversion of £52,500 worth of convertible loan notes. The new shares will be admitted to trading on AIM on or around 1 July 2025. The raise is being conducted at the current market price of 32.5p per share, with no discount. This suggests the company has sufficient investor appetite to raise funds at the prevailing share price. However, the relatively small raise size of £52,500 compared to the company's £415.81k market capitalization is a neutral factor, potentially indicating limited growth opportunities or cautious management. The conversion of convertible notes will also result in some dilution for existing shareholders.