24 July 2016

Pan Pacific clinches new funding

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

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. 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

Synectics on the road to recovery

Synectics (AIM: SNX), the surveillance systems specialist, is on the road to recovery. The shares were hit badly by the downturn in the oil and gas industry which historically has been a key customer. Happily the slack is now being taken up elsewhere, with the order book up 34 per cent from the start of the year.

Profit from playing by the rules

One ‘industry’ that has boomed over recent decades is compliance. Everything has become a lot stricter as far as rules and regulations are concerned. It’s not enough to abide by the processes of our workplaces, we also need to demonstrate that proper procedures are in place and are being complied with. That’s good news for Ideagen (AIM: IDEA) whose software helps over 2,000 companies in regulated industries manage their governance, risk and compliance.

Collagen targets a step up in scale

Collagen Solutions (AIM: COS) results gave new CEO Jamal Rushdy an opportunity to set out his strategy for the company. Collagen has an unusually broad geographic footprint for a company of its £13 million size. The plan is to use this platform to exploit Collagen’s expertise in tissue engineering, both through contract manufacturing and developing its own medical devices.

Concepta Diagnostics reverses into Frontier shell

Cash shell Frontier Resources (AIM: FRI) has announced the reverse takeover of Concepta Diagnostics. Concepta is focused on women’s fertility and plans to have its first product in the market shortly.

Beam me up

Satellite Solutions Worldwide (AIM: SAT) has just pulled off a significant acquisition which increases its user base by 40 per cent. Avonline is a major UK competitor in satellite broadband and is being acquired for £10 million, funded by a further financing agreement with the Business Growth Fund.

Plastics looking to expand

Specialist manufacturer Plastics Capital has released an encouraging set of results and is looking to move into expansion mode. With 45 per cent of sales exported from the UK, the recent devaluation of sterling will be a help. Management also feels that the business is now on a stable footing after encountering tough conditions in the resources sector and emerging markets during recent periods.

More News