REG - Fox Marble Holdings - Issue of Shares and Warrants

Focus XploreAnnouncement

09/12/2021 12:05

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RNS Number : 1483V  Fox Marble Holdings PLC  09 December 2021

9 December 2021

Fox Marble Holdings plc

("Fox Marble" or the "Company")

 

Issue of Shares and Warrants

 

·     Placing to raise £500K at 1.3p per share

·     Proceeds will be used to expand processing operations to cater for
expected increased demand

·     Targeting revenue growth in 2022 following the COVID-enforced
shutdowns in 2020-21

 

Fox Marble, the AIM listed company focused on marble quarrying and finishing
in Kosovo and the Balkans region announces that it has issued in aggregate
38,461,539 new ordinary shares ("Placing Shares") at a price of 1.3 pence (the
"Placing"), raising gross proceeds of £500,000. Investors in the Placing will
also receive one warrant for every two Placing Shares to subscribe for one new
ordinary share in the Company at an exercise price of 2 pence per share which
are exercisable at any time from Admission (as defined below) up until the
third anniversary of Admission.

 

Background to Placing and Use of Proceeds

 

Over the last six months the Company has witnessed an uplift in demand for its
cut and polished marble, some of which has already translated into firm
orders. Accordingly, the Company has elected to raise funds to acquire
additional machinery and working capital to meet this increased demand. This
expanded capacity is also expected to enable the Company to enter into
additional contracts with new customers over the coming months.

 

The Company is currently fulfilling contracts worth €1.35M and has signed
additional contracts, due to commence in 2022, for approximately €2.3M. This
includes the recently announced new Joint Venture with UAE based Al Bab Al
Mumtaz, which provides for a minimum commitment of €0.5M in 2022, increasing
to approximately €1M in 2023.

 

A small portion of the funds from the Placing will be used for the
establishment of a new marketing area, not only for the Company's cut and
polished stone, but importantly for its block marble, which over the last few
months has seen a resurgence of interest from buyers in the Middle East and
Far East. The Company has not accounted for any block marble sales in its
order book, but if interest persists it is likely to provide a boost to 2022
revenue.

 

Chris Gilbert, CEO of Fox Marble, commented:

 

"I am pleased with the level of support shown by investors in this financing.
The pricing of the Placing, effectively at market, highlights the positive
investment case and opportunity the Company provides.

 

Our operations were hindered by the COVID pandemic during 2020-2021,
particularly given the nature of our business. However, we have seen a
significant return in demand and feel now is the right time to invest in our
infrastructure to meet this increased appetite. The equipment we are acquiring
has already been sourced and the Company expects it to be delivered and
installed in Q1 2022.

 

This expansion now gives the Board the confidence to conclude further
contracts with parties the Company has been in dialogue with for some time. I
am also heartened by the uptick in enquiries with respect to the purchase of
block marble, a revenue stream that has been closed off since the emergence of
the COVID pandemic in 2020.

 

I am therefore optimistic that 2022 will prove to be a turning point for the
Company. It is also likely to be the year where FOX Marble is able to present
its case in the court of International Arbitration on its €195M legal case
against the Republic of Kosovo. Legal proceedings are fully funded and are
being led by Dentons Europe CS LLC."

 

Admission & Total Voting Rights

 

The Placing Shares will rank pari passu with the existing ordinary shares in
all respects. Admission to AIM of the Placing Shares will occur on or around
15 December 2021 ("Admission"). Following the admission of the 38,461,539
Placing Shares, the total issued share capital of the Company will be
417,333,553 ordinary shares, each with voting rights. The Company does not
hold any ordinary shares in treasury and the above figure may be used by
shareholders as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change to
their interest in, the Company, under the Disclosure and Transparency Rules.

 

 This announcement contains inside information for the purposes of Regulation
11 of the Market Abuse (amendment) (EU exit) Regulations 2019/310. The
Directors of the Company take responsibility for this announcement.

 

 

For more information on Fox Marble please visit www.foxmarble.net
(http://www.foxmarble.net) or contact:

 

Fox Marble Holdings plc

Chris Gilbert, Chief Executive Officer

Tel: +44 (0)20 7380 0999

Fiona Hadfield, Finance Director

Tel: +44 (0)20 7380 0999

 

Quatro PR

Gary Pleasants

Tel: +44 (0)207 566 7963/+44 (0)7966 487 739

Mark Herbert

Tel: +44 (0)7770 381608

 

Brandon Hill (Joint Broker)

Oliver Stansfield

Tel:  +44 (0)20 3463 5000

 

Allenby Capital (Joint Broker)

Nick Naylor/Nick Athanas/Liz Kirchner (Corporate Finance)

Amrit Nahal (Sales and Corporate Broking)

Tel:  +44 (0)20 3394 2973

 

Cairn Financial Advisers (Nomad)

Liam Murray/Sandy Jamieson/Ludovico Lazzaretti

Tel: +44 (0)20 7213 0880

 

Notes to Editors

Fox Marble (AIM: FOX) is a marble production, processing and distribution
company with operations in Kosovo and the Balkans.

Its marble products, which include Alexandrian Blue, Alexandrian White,
Breccia Paradisea, Etruscan gold and Grigio Argent, are gaining sales globally
to wholesale companies and directly to luxury residential properties.  In the
UK these include St George's Homes and Capital and Counties Plc's Lillie
Square development.  In Sydney, Australia, Rosso Cait, Alexandrian White and
Breccia Paradisea have been used in what is expected to be Australia's most
expensive residential property.  These sales serve to demonstrate the
desirability of Fox Marble's premium marble products as the stone of choice in
some of the most prestigious and expensive residential developments around the
world.

 

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors

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