27th June 2018
Thrings’ Corporate team in London has advised Optiva Securities Limited and Beaumont Cornish Limited on the re-admission of shares in minerals business Emmerson Plc to the standard segment of the Main Market of the London Stock Exchange (LSE).
Emmerson plc has acquired the Khemisset Potash Project in northern Morocco and simultaneously raised £6million from an oversubscribed placing arranged by financial adviser and broker, Optiva Securities Limited.
Potash is a potassium-rich salt which is used as an agricultural fertiliser to boost the yields and quality of plants and crops. Use of potash is expected to increase in the longer term as rise in the world’s population drives demand for greater food production.
The project has been valued at £289million, with production scheduled to begin in 2022. Hayden Locke, chief executive of Emmerson plc, said the mine could deliver significant gains for shareholders as a result of producing one million tons of potash each year over the next two decades.
Stockbrokers Optiva Securities Limited and corporate financiers Beaumont Cornish Limited received legal advice on the initial public offering (IPO) from Thrings partner, Jonathan Morris.
Jonathan Morris said: “Thrings acted on the initial Emmerson flotation as a cash shell company seeking a transaction in the natural resources sector. The project, although at an early stage, has significant potential and we look forward to seeing how it progresses.”
Hayden Locke commented: "Now is the perfect time to be developing what we believe is an outstanding potash project.
"We are delighted to have successfully brought London's newest potash company to the market. We now have the wheels in motion to meet our objectives and move towards becoming a producing potash fertiliser company."
The Emmerson plc transaction is the latest IPO handled by Thrings, with previous listings including those on behalf of daVictus plc, Bluebird Merchant Ventures Ltd (BMV) and Vale International Group Ltd.