Memery Crystal advises Kropz Plc on £8.9 million fundraising

Kropz is a longstanding client of the firm, with Nick Davis, Senior Partner of Memery Crystal, having advised on admission of Kropz’s shares to trading on AIM in 2018.

Memery Crystal’s ECM team advised Kropz on the fundraising and underwriting, led by Corporate Partner Robert Bines-Black, who was assisted by Associate Ravina Mahajan, Solicitor Mike Lanning and Trainee Solicitor Eva Wichtowski.

This is the third AIM fundraising that Memery Crystal has advised on within the past three months, each led by Robert Bines-Black, which have raised in total over £30 million.

Nick Davis, Senior Partner, commented: “It is fantastic to see The Arc Fund continue to support Kropz as the group moves towards implementing the next stage of its strategy. The fundraising and restructuring are important steps towards making Kropz more attractive to financing and strategic partners as it seeks to grow production at Kropz’s Elandsfontein phosphate project in South Africa.”

Werner Greyling, Financial Manager of Kropz, commented: “It has been a pleasure to work with Nick, Robert and the Memery Crystal team on this important transaction for the Kropz group. The Memery Crystal team have consistently been responsive and attentive, working alongside us to push the transaction forward and providing crucial advice and project management support.”

Kropz’s major shareholder, The Arc Fund (“Arc”), subscribed for the majority of the fundraising shares, with a retail offer of up to approx. £1.8 million available to existing UK retail shareholders. Arc has agreed to underwrite an amount equal to the retail offer, ensuring a total fundraising of approx. £8.9 million. The fundraising forms part of a broader restructuring by Kropz which, if approved, would lead to intercompany debt and certain loans between the Company and its subsidiaries being simplified.