Aim-listed phosphate producer Kropz has confirmed that retail investors have conditionally subscribed to 243 118 ordinary shares through the REX retail offer launched earlier this month.

Additionally, ARC Fund will subscribe for the remaining 643.6-million ordinary shares under the subscription as part of the underwriting arrangements. This follows the company’s offer to its existing retail investors and the results of its conditional subscription with ARC.

The REX retail offer was aimed at giving Kropz's UK retail investors an opportunity to participate in the company’s fundraising efforts. The REX platform allows individual investors to access company share offers under the same terms as institutional investors.

The offer, which closed on September 9, enabled retail investors to subscribe to a limited number of shares, with a minimum investment set at £50.

The issuance of the 643.8-million new ordinary shares is conditional upon the passing of the fundraising resolutions at the general meeting, approval from exchange control, and admission. This fundraising will raise about £8.9-million in gross proceeds for the company.

Kropz plans to apply for the new shares to be admitted to trading on Aim on September 27.

Following admission, Kropz’s total issued share capital will be 1.57-billion ordinary shares, with each share carrying one vote.

The fundraising is part of Kropz’s broader financial restructuring efforts aimed at simplifying its debt structure. This includes converting a substantial amount of debt held by ARC Fund into equity and issuing new convertible loan notes. These efforts are intended to stabilise Kropz’s financial situation, support its key projects, and make the company’s financial structure more appealing to investors.

Kropz has faced operational challenges, particularly at its Elandsfontein phosphate project in South Africa, where unexpected ore variability and difficult mining conditions have slowed progress.

The additional funds will help address these issues, as well as support feasibility studies at the Hinda project in Congo-Brazzaville and settle outstanding financial obligations, such as a £2.8-million loan to BNP Paribas.