Panther Metals has dumped its remaining shares in Fulcrum Metals in a discounted placing that will net Panther just over £250,000.
Fulcrum Metals was spun out of Panther Metals in an AIM IPO in 2023, with Panther Metals retaining a stake of 10m shares in Fulcrum worth around £1.7m at the time of the IPO.
The company has crystallised more than three-quarters of this stake today for just £266,000.
It’s unlikely either set of shareholders will be happy with the placing. Panther Metals has sold the remainder of its stake after having plentiful opportunities to do so at prices many times higher than the current level.
Fulcrum Metals shareholders now know there is weak demand for their shares with the placing price so far below the market price. On a positive note, Fulcrum shareholders can be pleased that a distressed seller has now been cleared out.
Underscoring Panther Metal’s need for cash, the company agreed with brokers to break a renewed lock-in period that was supposed to run until May 2025.
Today’s share sale is Panther Metals’ third cash raise this year, having raised £450,000 in January and issuing a smaller amount of shares at the beginning of April.
Panther shareholders hope the recently raised cash will be put to good use in developing the company’s Canadian assets before the firm taps the market again.