Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of nickel development company Horizonte Minerals (LON: HZM) are sliding on Friday after the company announced the completion of its share placing, which raised £18 million in total.
The AIM-listed company announced the fundraise in a statement released on Thursday evening, reporting the result on Friday morning.
Horizonte issued 162.7 million new ordinary shares at a price of 7.5p per share, raising a total of £18 million with approximately £12.2 million from the placing and £5.8 million from the Canadian offering.
The placing was conducted by Cantor Fitzgerald Canada Corporation, Peel Hunt LLP and BMO Capital Markets Limited, acting as joint book-runners. Simultaneously, the Canadian offering was undertaken by Paradigm Capital Inc.'s syndicate as sole book-runner and included Cormark Securities Inc.
“The financing completed today provides Horizonte with a strong balance sheet as we enter this next phase of the Company's evolution as we advance Araguaia through to start of construction. This funding allows us to fast track critical path workstreams, advance long lead items and continue to build our team,” commented Jeremy Martin, CEO of Horizonte.
“Horizonte is at a very exciting time as we transition to becoming a nickel producer. We have a scalable production profile that will position the Company as a significant nickel producer globally. As part of this transition, it is important that we continue to attract large, long-term institutional shareholders to support our growth,” added Martin.
The company’s shares are currently trading at 8.42p, down 8.97%, having earlier reached lows of 7.96p.
Should you invest in Horizonte Minerals shares? Horizonte Minerals shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Horizonte shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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