Atlas Metals Group is moving ahead with plans to finance its proposed acquisition of Universal Pozzolanic Silica Alumina Ltd, with new shares issued to help repay part of an existing funding facility and support the transaction.
The company has issued 3,368,394 new ordinary shares. This includes shares issued through a partial conversion of the Yorkville-managed funding facility, as well as additional shares issued under its at-the-market arrangement with Axis Capital. After the issue, Atlas Metals will have 42,549,821 ordinary shares in issue.
The enlarged share base means existing shareholders own a smaller percentage of the company than before. However, the share issue also gives Atlas Metals more room to manage its funding position while it works on the planned acquisition.
The acquisition is the main strategic focus. Atlas Metals wants to buy Universal Pozzolanic Silica Alumina Ltd to build exposure to silica and alumina-related materials. These materials are used in industrial markets, so the deal could give the company a more defined direction and a clearer asset base.
Atlas Metals Group plc (LON:AMG) is focused on identifying projects and/or acquisition opportunities with the potential for growth and value creation in commodities which face high demand due to global macroeconomic, energy transition, and technology trends.
