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Creon Corporation

  • BY: Andrew Hore |
  • POSTED: 16/01/2009 |

Westminster Asset Management Ltd has bought a 5.35% stake in Creon Corporation.

Prior to this Loxdale Ltd acquired a 12.4% stake.

Mezzanine finance provider Creon raised £120,000 at 3p a share in October in order to be able to continue to operate. Each share issued had a warrant to subscribe for an additional share at 1.5p each. There was £580,000 of debt in October 2008. Part of this debt was converted into shares the following month as part of the fund raising.

There was a sharp rise in the Creon share price during the middle of November 2008 after the placing and debt swap. They are five times the price they were three months ago. At 42.5p a share, Creon is valued at £11.9m. 

Creon was set up to provide mezzanine finance to small and medium sized residential property developers. Last year Creon unwound a proposed acquisition because it did not have sufficient working capital to fund its growth.

Westminster was created to purchase significant stakes in fast growing asset management companies.

On its website, which consists of one page, Westminster says that it is looking for companies:

1. With a proven track record of growth;
2. With a business plan that will result in further growth;
3. With a broad spread of asset management business and income streams.

“We are building stakes in a number of asset management businesses around the world using our existing network of contacts and advisors”, it adds.

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