News blog

GEM BioFuels

• BY: Andrew Hore |
• POSTED: 07/12/2012 |

GEM BioFuels will become a mining and natural resources shell and raising up to £350,000 at 0.1p share.

The par value of the shares is being reduced from 1p to 0.1p so that the new shares can be issued. Up to £250,000 of the subscription is underwritten by Marine Investments but it will sell any shares that take its stake above 29.9%. Marine will receive a warrant exercisable at 0.5p a share for every five shares it subscribes for. The warrants last for five years.

The share price fell by more than three-quarters to 0.33p when the suspension of trading in the shares was suspended. That values the existing share capital at £300,000.

GEM did not have the cash to push ahead with its jatropha plantations in Madagascar. Success levels of the jatropha plantations were too low to make them commercially viable. There was £107,000 in the bank at the end of June 2012 but the company had net liabilities. The existing operations will be wound-down.

David Paull and WH Ireland director John Molyneux are joining the board. WH Ireland floated GEM at 60p a share in October 2007.

The company is changing its name to Hunter Resources.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFNovember2012_38.pdf