Placing

RNS Number : 2252F

Iofina PLC

20 April 2011

 



 

20 April 2011

Iofina plc

 ("Iofina" or "the Company")

PLACING

Cash placing of 10,519,372 Shares to raise £2.84 million for Business Development and to Drive Expansion

The Board of Iofina (LSE AIM: IOF), the holding company of a group of companies involved in the exploration and production of iodine and natural gas, is pleased to announce today the completion of a placing (the "Placing") of 10,519,372 new ordinary shares of 1p each (the "Placing Shares") at a price of 27p per share (the "Placing Price") to raise £2.84 million (before expenses). The Placing Shares have been placed with existing institutional and other investors by Mirabaud Securities LLP, and represent, in aggregate, 10 per cent of the existing issued share capital of the Company, being the maximum allowable under the Company's existing authorities.

The Directors consider that the funds raised from the Placing will enhance the Group's ability to benefit from record iodine prices. The net proceeds will be used to meet Iofina's working capital requirements in relation to the optimization of its current rollout of the mid-stream third party iodine brine business, to secure additional sources of iodine for its chemical business, and to pursue several new potential business development opportunities. 

The Placing is conditional, inter alia, on admission of the Placing Shares to trading on AIM ("Admission").  The Placing Shares will rank pari passu in all respects with the existing ordinary shares of the Company. Application will be made for Admission and it is expected that Admission will become effective and that dealings in the Placing Shares will commence at 8.00 a.m. on 27 April 2011. Following completion of the Placing, the Company will have 115,713,098 ordinary shares in issue. 

Commenting on today's Placing, Lance Baller, CEO and President of Iofina, commented:

"The Company is encouraged by the continued strong support from its current shareholders which resulted in an oversubscribed placing.   It has been a highly encouraging start to the year and today's news follows the recent contract win and increasing iodine prices which are currently at record levels. 

The Company is currently exploring several potential new business development opportunities and the Placing provides the Company with the capacity to handle significant additional volumes of business." 

Further announcements will be made at the appropriate time.

For further information, please contact:

Lance Baller, CEO Iofina plc Tel: [phone]	Nominated Adviser: James Harris/Angela Peace Strand Hanson Limited Tel: [phone]
Broker: Rory Scott Mirabaud Securities Limited Tel: [phone]	Media Contact: Dominic Barretto Yellow Jersey PR Limited Tel: [phone]

About Iofina

Iofina is involved in the exploration and production of both iodine and natural gas with complete vertical integration into the specialty chemical iodine derivatives business.  It also provides third party brine stream operators with a turnkey mid stream fee based solution to extract iodine.  The presence of both iodine and natural gas has been discovered on acreages which the Company holds through its wholly owned subsidiary Iofina Natural Gas, Inc.  The presence of iodine and natural gas allows the Group to generate dual revenue streams over a single cost structure.  

Iofina is traded on the London Stock Exchange's AIM Market under the ticker: IOF

www.Iofina.com 

Wellhead Extraction Technology® and WET® are registered trademarks of Iofina Natural Gas, Inc.

 

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