6 October 2015

Pan Pacific clinches new funding

30/07/2009 Robert Tyerman

New funding should allow Pan Pacific Aggregates to begin work at its Pumptown granite quarry

New funding should allow Pan Pacific Aggregates to begin work at its Pumptown granite quarry

Battle-scarred Pan Pacific Aggregates (PPA) has raised £540,000, is on track for another £500,000 and is scouting some distressed acquisitions.

Broker VSA Capital, whose boss William Voaden also heads British Columbia-based PPA, secured the first tranche at a barely visible 0.15p and was offered the second by retail brokers speculating that the fortunes of the bombed-out company were now on the turn. VSA says £300,000 is in the bag at 0.225p and sounds confident of taking that to £500,000.

Voaden argues that this financing leaves only one hurdle before the company can pursue its ambitions to quarry granite at Pumptown in the locality. That is a public meeting on 25 August at the town of Abbotsford, within whose jurisdiction Pumptown lies and where Voaden argues the local mayor’s support should win the day for PPA.

Floated on AIM at 80p four years ago, PPA shares collapsed from 91p in 2006 to 0.25p more recently after a remorseless series of mishaps. First, resistance from indigenous people put paid to the company’s original project in the region’s Schelt Peninsula and then Pumptown hit technical and infrastructure snags, political opposition and obstruction from its local partner.

The latest funding should allow PPA, which lost £3.3 million last year and recently reached a creditors’ agreement at nine cents in the dollar, to make a start with Pumptown and exploit a regional shortage of aggregate, provided the Abbotsford meeting goes well. Voaden says the company is also talking to liquidators about possibly taking over two over-borrowed local sand and gravel concerns, a deal that would require further funding from the market.

At the height of the company’s crisis, analysts argued it was worth either nothing or significantly more than its current value. That remains the case and the odds have improved.


Click here to follow Growth Company Investor on Twitter.

Tags: Fundraisings, Mergers & acquisitions, Penny shares

Cash Shells 2015

Published in September 2015 this annual research report provides a comprehensive overview of cash shells on the Main Market, AIM and PLUS landscape. You can purchase the directory at the pre-order price with a 15% saving (+VAT). Offer valid until 6th October 2015. Order your copy today


Superb investment toolkit for private investors

SharePad is the new web-based service from ShareScope. Easier to use and more powerful. Perfect for tablets, Macs and Windows PC. Covers ALL your investment requirements.

Growth Company Investor: free trial

Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.

Directors' Pay on AIM 2015

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1000+ AIM-quoted companies. The full report is available to order for £385 + VAT. Click here for more info


Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

Another early contract win for Corero 02/10/2015

Internet security specialist Corero (AIM: CNS) has announced a significant new contract win. Worth $0.7m, the contract provides “distributed denial of service” (DDoS) protection across the customer’s worldwide operations.

Earthport powers ahead in payments 30/09/2015

Cross-border payments specialist Earthport (AIM: EPO) continues to make strong progress. Results to June showed payments processed grew by 75% in the year to June.

Bringing superfast data to a city near you 28/09/2015

Builder of superfast "gigabit" data networks, CityFibre (AIM: CFHL), continues to make solid operational progress.

Tungsten continues to struggle 24/09/2015

Tungsten (AIM: TUNG) listed two years ago to take advantage of a huge market opportunity. The concept is very appealing and early enthusiasm saw the shares almost hit 400p. Ambitious start-ups often take a lot longer to work than first imagined however, as highlighted by the recent AGM statement.

The jury's out on Porta 24/09/2015

Porta Communications (AIM: PTCM) results failed to impress the market with the shares dipping below 7p.

Drug developer Synairgen making good progress 24/09/2015

Recent announcements from respiratory drug developer Synairgen (AIM: SNG) show the Southampton-based company’s strategy is nicely on track. The key phase II trial for its severe asthma and COPD drug has begun and a new product has entered the pipeline.

More News