Ferrexpo seeks to initiate additional share placement of at least $100 mln before May, share price 10.5% down
Net accessible cash of Ferrexpo, a mining company with core assets in Ukraine, was approximately $17 million as at April 17, 2026. Its directors emphasize the urgent need for a minimum $100 million share capital raise, without which shareholders could lose the entire value of their investment in the existing ordinary shares.
"The Directors believe that the Intended Fundraise is currently the only viable solution capable of implementation in the timeframe," Ferrexpo said in a stock exchange statement on Wednesday.
According to the statement, such an increase in share capital will likely be structured as a conditional placement of new shares to existing and new institutional investors with the goal of raising at least $100 million to support the group’s working capital and meet its short-term operating needs, allowing it to operate at a reduced level for the next 18 months.
"It is currently expected that such capital raising will be commenced and completed (subject, among other things, to the approval of resolutions at the general meeting and the admission to listing and trading of new ordinary shares to be issued as part of such capital raising) no later than April 30, 2026, so that the company can publish its audited financial results for the year ended December 31, 2025," the statement noted.
The company does not intend to publish a prospectus in connection with the planned capital raising.
Ferrexpo said that it is continuing to engage with the company’s largest shareholder, Fevamotinico Sarl, owned by Kostiantyn Zhevaho, which currently holds 294.994 million shares, representing 49.32%, regarding whether Fevamotinico will support the resolution at the general meeting. The board also warned that if the planned fundraising does not commence and the bookbuilding is not completed on or prior 30 April, the listing and trading of its shares will be suspended from 7:30 a.m. on 1 May 2026 until the audit is completed and the 2025 annual report and accounts are published, which itself will require the implementation of an appropriate financing solution to enable the financial results to be prepared on a going concern basis.
"In such a scenario, there can be no certainty as to the expected timing of the lifting of the suspension of listing and resumption of trading of the company’s shares, if at all," the statement said.
Ferrexpo shares have fallen 11.91% since the start of trading on Wednesday, to 38.02 pence, corresponding to a market capitalization of GBP 258.2 million.
