Companies

NSE-listed Atlas in yet another fundraiser

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Atlas African Industries Limited chief executive Carl Esprey. PHOTO | FILE

Atlas African Industries Limited is seeking to raise $1.5 million (Sh153 million) by issuing shares to new investors, marking the latest of a series of fund-raisings which have deeply diluted shareholders.

The company, which remains suspended on the London and Nairobi bourses, has raised hundreds of millions of shillings which it has burned transforming from an oil and gas logistics firm in Kenya to a glass bottles manufacturer in Ethiopia, and finally to buying a stake in a Nigerian betting firm.

“In order to finance the company’s proposed expansion in the African gaming sector it will be necessary to raise additional finance in the region of $1.5 million, which the board would anticipate undertaking through a non pre-emptive private placing to be completed early in 2017,” Atlas said in a statement.

The company has convened a general meeting on January 19, 2017 in Guernsey to obtain shareholder approval for issuance of 1.2 billion shares to raise the funds.

“The fund-raising Shares, which will rank pari passu in all respects with the company’s existing ordinary shares currently in issue, will represent approximately 44.5 per cent of the company’s enlarged issued share capital following completion of the fund-raising,” the company said.

Loss-making Atlas has had a troubled short history since listing on the NSE in December 2014.

The company recently invested Sh50 million to acquire a 13.5 per cent stake in BonanzaWin, a Nigerian gaming company offering a range of “bricks-and-mortar” and online play gaming experiences including sports betting, live casino, slot games, virtual games and football pools lottery.

READ: Troubled Atlas cancels London bourse listing, seeks buyer for Addis plant

Atlas said it has hired Willem Jacobus Bodenstein, a slot machine and sports betting specialist with extensive experience of operating in Southern Africa, to join the company as chief operating officer.

He is tasked with building physical gaming operations in a number of African jurisdictions as Atlas seeks to expand in the gaming business.

“The company is separately in discussions with potential partners who may offer access to top-tier on-line gaming infrastructure, which will further strengthen and complement Atlas’ current investment in BonanzaWin,” Atlas said in the statement.

Atlas’ shares last traded at Sh1.05 on the NSE, a major rout from the listing offer price of Sh11.5.

The company raised $5 million (Sh505 million) from Kenyan investors in a private placement ahead of its listing on the Nairobi bourse.