8 February 2012

Serabi seeks restructure

02/01/2009 Robert Tyerman

Hard-pressed Brazilian gold play Serabi Mining proposes a hefty share equity write-down as it contemplates further fundraising.

The AIM-quoted company, which is focused on projects in Brazil’s Jardim do Ouro district, told the market in November it was in talks with potential bidders for the whole company or some of its assets, but, so far, nothing concrete has emerged. Serabi, advised by Numis Securities, says equipment delivery delays at its Palito mine had hit production and forced a strategic review by chairman Graham Roberts and fellow directors, who concluded further ‘substantial development’ would be needed – requiring new capital.

Meanwhile, collapsing stock markets were making capital raising an ever tougher proposition. Serabi’s shares, which were floated in 2005 at 30p and hit 54.5p the following year, have traded below their 10p par value since September and now languish at a mere 1.25p, but company law precludes equity raising below par.

For that reason, the company wants to wants to subdivide and re-classify each of its 10p ordinary shares into one new ordinary share with a new par value of 0.5p and one ‘effectively valueless’ deferred share with a 9.5p par value and no rights to votes or dividends. This would leave a clear field for as yet un-issued, but authorised shares to be subdivided into 20 new ordinary shares with a 0.5p par value.
         
Serabi’s directors say they intend to vote their shares, amounting to a combined 27.9 per cent of the company in favour of the restructure at a special shareholders’ meeting on 28 January.
 
Growth Company Investor is the UK’s leading authority on small-cap and AIM companies. You can gain immediate access to all the recent share recommendations with no obligation, with a free 30-day trial. Click here to join today.

Sector: Mining

Companies: Serabi Gold

Subscribe today


Subscribe today and save 50%. Receive company watch recommendations and extensive company profile tips, released two months ahead of the market.

Sign up here

Spread Trading. New from Halifax Share Dealing

£100 credit when you open five trades within 60 days – terms apply. Spread Trading is not for everyone please ensure you understand the risks as you may lose more than your initial deposit. Click here for more information.

Institutional Investors in AIM 2011 - New Report

This unique study analyses the shareholdings of companies listed on AIM, extracting trends including rankings of the value and number of their investments.
Please click here to order your copy of the report or call 0207 250 7056.

Coverage of AIM, techMARK and PLUS Markets

Informative features and research on fast-growing companies, small-cap and growth stocks, penny shares, stock market tips and share recommendations, directors' dealings, company news and analysis, new issues and upcoming IPOs.

If you're interested in business tax updates visit our specialist tax guide website.

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

Thomas nurses £91m loss 08/02/2012

Beleaguered travel operator Thomas Cook (TCG) has reported a loss of £91 million its first quarter also announcing the sale of its Indian division.

Tags: Doing business in India, Sale of subsidary, Travel and leisure, Travel operator

Sector: Travel & Leisure

Chariot finishes 3D survey 08/02/2012

AIM-quoted Chariot Oil and Gas (CHAR) has completed a 3D seismic survey across its central blocks.

Tags: AIM 100, Business in Namibia, Commodities in Africa

Sector: Oil & Gas Producers

Companies: Chariot Oil & Gas

Aminex and Solo disappoint 07/02/2012

Aminex (AEX) and Solo Oil (SOLO) both reported the Ntorya-1 well had 'not encountered' sandstone intervals after drilling 2500 metres.

Tags: Commodities in Africa, Oil and gas projects, Product sharing agreement

Sector: Oil & Gas Producers

Companies: Aminex , Solo Oil , Tullow Oil

Brady to raise £18m 07/02/2012

Brady (BRY), the supplier of software to the commodities sector is to raise £18 million to fund two acquisitions.

Tags: Acquisitions, Commodities sector, GCI sector picks, Software sector

Sector: Software & Computer Services

Companies: Brady

OMG clinches £2.3m deal 06/02/2012

Motion capture specialist OMG (OMG) has won a £2.3 million deal to provide surveying services for the Highways Agency

Tags: Contract wins, Motion capture technology, Surveying business

Sector: Software & Computer Services

Companies: OMG

Sunrise high grade 06/02/2012

AIM-quoted barite explorer Sunrise Resources (SRES) has reported high-grade results from its drilling programme in South-West Ireland.

Tags: Commodities in Ireland, Drilling in Ireland, Mining updates

Sector: Mining

Companies: Sunrise Resources

More News

Sectors