One Penny Stock (LSE: VAST) Has Raised £900,000 Through A Share Placement

  • May 31, 2019 BST
  • Team Kalkine
One Penny Stock (LSE: VAST) Has Raised £900,000 Through A Share Placement

AIM-listed Vast Resources Plc is engaged in the business of gold mining. The group is a constituent of FTSE AIM All-Share and FTSE AIM All-Share Basic Resources. The group has mines in Romania and Zimbabwe and focused on the speedy development of high-quality brownfield projects.

Shares of the Vast Resources Plc was admitted to the sub-market of the London Stock Exchange as on June 30, 2006. With the outstanding market capitalisation of around £9.38 mn, it ranks the mining group among the small-cap companies listed on the London Stock Exchange.

On May 30, 2019, the mining group has announced that it has raised around £900,000 through share placing of 775,862,068 ordinary shares of 0.1 pence each. The issue was made at a price of GBX 0.116 pence per ordinary share.

In the company filings with the London Stock Exchange, the company stated that proceeds from the share placing are adequate to meet its financial needs in connection with the company’s activities in Romania and general working capital requirements.

Admission of the issued shares will be effective, and trading in the issued shares will commence on June 04, 2019. Shares placed will list on the same rate with the existing shares. Post-admission of the issued shares, the total share capital of the company will be around 8,721,033,379.

Share Price Performance – 1 Year

In the past one year, shares have delivered a negative price return of around 77.74%, and on a year-to-date basis, the stock was down by 59.31%. Shares in the past 52-wks have registered a high of GBX 0.69 and a low of GBX 0.11, and at the current price level, as quoted below in the price chart, shares were trading around 83% below the 52-wk high price level.

Daily Price Chart (as on May 31, 2019), before the market close. (Source: Thomson Reuters)

At the time of writing (as on May 31, 2019, at 02:54 PM GMT), shares of “VAST” were quoting at GBX 0.118 and added around 7.2 per cent against the yesterday’s closing price.

From the simple moving average standpoint, shares were trading considerably below the 30-days, 60-days and 200-days simple moving average price, which is a bearish technical indication for a stock.

Stock's average traded volume for 5 days was 159,220,380.00; 30 days - 79,844,557.07 and 90 days – 130,440,508.87. The 5-days average daily traded volume in the stock was 99.41% above the 30-days average daily volume traded at the London Stock Exchange.

The company’s stock beta was 0.78, reflecting lower volatility as compared to the benchmark index.

The Relative Strength Index of the stock stood at 25.78, which reflects that the script has entered an oversold zone and near-term recovery might be possible.

However, post yesterday’s filings made by the company with LSE, stating that the group has raised around £900,000 through a share placement process, has pushed the stock price up by around 7.2 per cent in the today's session (at the time of writing).

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