Pan Pacific Aggregates secures £2m facility from Yorkville Advisors
Pan Pacific Aggregates (LON:PPA) has secured a £2 million standby equity distribution agreement (SEDA) with YA Global Master to fund the development of its projects.
Pan Pacific and YA Global Master, an investment fund managed by Yorkville Advisors, entered into a non-binding heads of agreement over a SEDA on January 10 this year.
Under the terms of the agreement, shares issued under the SEDA will be priced at 95 percent of the lowest of the daily volume weighted average prices in the ten day period following a draw down request.
There are no penalties for not requesting draw downs, while the implementation fee of £100,000 will be paid in quarterly instalments.
"The SEDA will provide the company with ready access to capital to assist in funding the development of the group's business and ongoing working capital requirements," said executive chairman Lynda Chase-Gardener.
Last month, the group said its main asset Quadling Quarry in British Columbia had traded well in the local market despite the challenging macroeconomic environment.
The local market, said Chase-Gardener, should grow two percent in both 2012 and 2013 as major infrastructure works that started a couple of years ago are now in full swing.
As a result, PPA expects to see growth in aggregate prices this year, which, along with continuing improvements and expansion of Quadling, should help it achieve its goal of becoming cash flow neutral as soon as possible.
Shares in Pan Pacific Aggregates traded at 4.5 pence this morning, down 2.7 percent from Friday's close. The company currently has a market cap of £1.76 million.
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