Biofutures soars on placing

Shares in biofuels specialist Biofutures International more than doubled on Monday after it announced a placing as part of its acquisition of Platinum NanoChem.

Shares in biofuels specialist Biofutures International more than doubled on Monday after it announced a placing as part of its acquisition of Platinum NanoChem.

Biofutures is placing approximately 116.54m shares at 140p each, raising £32.5m, giving the enlarged company a market cap of £162m.

The placing follows Biofutures's decision back in December to enter into an agreement to acquire the privately held global nanotechnology company by way of a reverse takeover. The merger of the two will result in an enlarged integrated business and will be named Graphene NanoChem.

Graphene NanoChem will be re-listed on AIM.

Biofutures International Chief Executive Officer Joe Wong said: "The proposed acquisition of Platinum NanoChem and the successful placement represent a significant opportunity to enhance shareholder value. The enlarged group is poised for growth based on its established revenue generating business model and its ability to apply its Graphene production technology to a range of products targeting major markets in the near and longer terms."

According to reports, the proceeds of the placing will go towards increasing the capacity of the company's chemical plants from 90m to 136m litres per annum and its nanomaterials plant from 1,000kg to 250,000kg per annum.

Biofutures's share price rose 101.61% to 6.25p by 13:43.

NR

Recommended

Aviva: a share for income investors to tuck away
Share tips

Aviva: a share for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
18 May 2022
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
18 May 2022
Three fast-growing, undervalued UK mid-cap stocks to buy now
Share tips

Three fast-growing, undervalued UK mid-cap stocks to buy now

Professional investor Katen Patel of the JPMorgan Mid Cap Investment Trust picks three fast-growing UK mid-cap stocks to buy now.
18 May 2022
Should you buy Vodafone shares, or steer clear?
Share tips

Should you buy Vodafone shares, or steer clear?

Vodafone grew revenue by 4% and profit by 11% last year, and offers investors a 6.4% dividend yield. So should you buy Vodafone shares? Rupert Hargrea…
17 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
Is the oil market heading for a supply glut?
Oil

Is the oil market heading for a supply glut?

Many people assume that the high oil price is here to stay – and could well go higher. But we’ve been here before, says Max King. History suggests tha…
16 May 2022
Value is starting to emerge in the markets
Investment strategy

Value is starting to emerge in the markets

If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy tra…
16 May 2022