Rubicon A Top Mover Following News Release

Share On Facebook
share on Linkedin

Rubicon Diversified Investments Plc (LSE:RUBI) announced on Friday that it has raised £400,000 through a firm placing of 4,000,000 shares and a conditional placing of 36,000,000 shares at 1p with Lonrho Plc and some high net worth investors.  Shares in the company rose 225% to 2.6p before the markets closed for the weekend.


The conditional placing is contingent on the passing of various measures at the general meeting of the company shareholders, which is scheduled to take place on 13 December 2011.  It has been agreed to purchase the same portion of the firm placing and the conditional placing once the measures are passed.


Dealings are set to commence on 24 November for the firm shares and 14 December for the conditional shares.


According to the statement, the placing shares will represent about 53.7% of the issued ordinary share of the company as enlarged by the placing. Lonrho Plc will own approximately 12.7% of the company.


Plans for Raised Capital


The proceeds of the issuance of stock will be used for due diligence on potential investment opportunities consistent with their new strategy of seeking an acquisition in the global aviation industry with a particular focus on Africa. The remainder of the funding will be used for working capital purposes.


The company also announced that, conditional upon the passing of certain resolutions at the general meeting, Mr David Lenigas and Mr Geoffrey White, respectively Executive Chairmanand CEO of Lonrho Plc, will join the Board of Directors.


Resolutions To Be Passed


Resolutions that will be up for a vote during the General Meeting include:


  • To give the Directors the authority to allot securities in the capital of the company up to £6,500,000.
  • To dis-apply the pre-emption rights over securities that the directors have.
  • To adopt the new investing policy geared towards aviation in Africa.
  • To grant 6,000,000 options to current directors of the company.
  • To approve the appointment of the Lonrho Executive Chairman and CEO to the board of Rubicon.


Rubicon Chairman Comments


Robert Burnham, Chairman of Rubicon commented on the news:


“We are delighted to announce this significant step forward in the strategy of Rubicon. We are particularly pleased to be initiating a relationship with Lonrho PLC to focus on investments in the global aviation and aviation services sector which we believe has excellent opportunities for us to exploit. We are proud to welcome David Lenigas and Geoffrey White to the Board, and we look forward to working with them through a period of intensive due diligence activity as we progress our new investing policy. We are confident that in the coming months, assisted by our new shareholders and Board members, we will be able to identify one or more suitable opportunities for acquisition, and we look forward to building the Company into a significant participant in the global aviation and aviation services sector.”


↑ Rubicon Press Release

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210727 00:37:55