23 May 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.

26 AUGUST UPDATE HERE

Click here to follow Growth Company Investor on Twitter.

Tags: Fundraisings, Mergers & acquisitions, Penny shares

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

The Bahamas is one of the richest countries in the Caribbean

Bahamas sees second reading of Petroleum Bill 21/05/2015

Bahamas Petroleum (AIM:BPC) has noted that the Bahamian Parliament  is making progress on passing the Petroleum Bill.

Tags: Bahamas, Oil and gas

Stride joins AIM 21/05/2015

Online bingo operator Stride Gaming has joined AIM in an IPO that raised £11.2 million.

Tags: Gambling, IPOs

Optimal trading well 21/05/2015

Mobile payments specialist Optimal Payments (AIM:OPAY) issued a trading update.

Tags: Mobile payments

Secure Property expands holdings 21/05/2015

Eastern Europe-focused Secure Property Development & Investment has expanded its footprint in Romania and Bulgaria.

Tags: Eastern Europe, Property

Empyrean busy at Sugarloaf 21/05/2015

US oil play Empyrean Energy (AIM:EME) provided a production update on its Sugarloaf project.

Tags: Oil and gas, Texas

Escher's essential product 14/05/2015

Postal service specialist Escher Group (AIM:ESCH) has won a deal to supply its RiposteEssential software.

Tags: Contract win, Technology

More News