The company said it had raised the funds through the subscription of around 19.2mln new shares at a price of 3.3p each, a 20% premium to its closing price last Friday.
Pembridge also said it has agreed to alter the terms of a convertible loan agreement with its chairman and chief executive Gati Al-Jebouri, to extend the maturity date on the loans to 31 December 2022 from 25 October 2021, increases the interest rate to 10% from 8% and remove the right of Al-Jebouri to convert any of the loans to shares in the company.
“This additional equity capital will strengthen the company and reduce the requirement to draw down further on the convertible loan. Moreover, the subscription at a premium to the market price highlights the continued confidence of the Board and some of its largest shareholders in the company”, the CEO said.
“We believe that we can rebuild shareholder value from these depressed levels, especially given we have now strengthened the financial condition of the company”, Al-Jebouri added.
Shares in Pembridge surged 17.8% to 3.2p in lunchtime trading on Monday.
Published at Mon, 20 Apr 2020 11:37:00 +0000-Pembridge Resources surges as it unveils £633,000 premium fundraising