Jubilee secures new investment

15th January 2021 By: Marleny Arnoldi - Deputy Editor Online

Aim- and AltX-listed Jubilee Metals has secured investment from two blue chip institutions, including one new to its share register.

The company on January 15 announced a placing of new and existing ordinary shares representing 4.96% of the enlarged issued share capital of the company to meet institutional demand.

A total of 99-million new ordinary shares, or 4.45% of share capital, and 11.5-million existing ordinary shares, or 0.51% of share capital, have been placed, at a price of 13p apiece, with two supportive institutional shareholders.

“The investment entry requirements for these institutions were enabled through ACAM agreeing to the partial conversion of the convertible loan note held by them, and certain directors agreed to allocate shares owing to them by Jubilee in lieu of salary sacrifices, in recognition that the share register would be strengthened by the addition of these institutions.

“The partial conversion of the ACAM convertible loan reduces the group’s borrowing and ongoing borrowing costs and is consistent with the restructuring of all historical debt held by Jubilee into far less costly debt provided by alternative financial institutional facilities.

"On completion of the transaction, all directors and officers maintain their current share option incentives,” CEO Leon Coetzer explained.