Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guides
Guidance and tools
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks Stock plan guidance
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
GCM Resources raises £1m to progress Phulbari Project
(Sharecast News) - GCM Resources announced the conditional raising of £1m before expenses through a placing of new shares on Friday, with the proceeds to be used for working capital as it continued to progress its Phulbari Coal and Power Project in Bangladesh. The AIM-traded resource explorer and developer said it issued 16,666,667 new shares at a price of 6p per share.
It said the issue price represented a discount of around 20% to the closing bid price of 7.5p on 15 January.
Net proceeds were expected to be about £0.94m after expenses, excluding VAT.
GCM said the placing was conducted on a non-pre-emptive basis under existing authorities granted at the company's general meeting in December.
The new shares would represent about 4.72% of the enlarged share capital and would rank equally with existing ordinary shares.
Clear Capital Markets Corporate Broking acted as sole bookrunner on the placing.
The firm said the funds would be used to support ongoing operations, including corporate overheads, legal and advisory costs and general administrative expenses.
It added that the placing would help ensure it remained in a financial position to advance its broader strategic objectives.
GCM said it continued to work towards advancing the Phulbari Coal and Power Project in north-west Bangladesh, which remained subject to securing the necessary government approvals.
The company noted what it described as a shift in momentum within Bangladesh towards the use of domestic natural resources, particularly ahead of national elections scheduled for February, although it cautioned that it provided no certainty regarding the project's development.
Under the terms of the placing, Clear Capital was also granted one million warrants exercisable at 6p per share for a period of three years from admission.
The warrants would not be admitted to trading on AIM.
Application had been made for the new shares to be admitted to trading on AIM, with admission expected at 0800 GMT on 21 January or shortly thereafter.
Following admission, GCM said it would have 352,958,790 ordinary shares in issue, each carrying one voting right, with no shares held in treasury.
At 1232 GMT, shares in GCM Resources were down 18.75% at 6.5p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Diversity, Equity & Inclusion Reports | Doing Business with Fidelity | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
