Mining company Ferrexpo, with its main assets in Ukraine, had a net cash position of $17 million as of April 17; its directors emphasize the need for an urgent increase in share capital by at least $100 million, without which shareholders could lose the entire value of their investments.
“The Board of Directors believes that increasing the share capital is currently the only viable solution within the required timeframe,” Ferrexpo stated in a stock exchange announcement on Wednesday.
According to the statement, such a share capital increase is likely to be structured as a conditional placement of new shares among existing and new institutional investors with the aim of raising at least $100 million to support the group’s working capital and meet its short-term operational needs, allowing it to operate at a reduced level over the next 18 months.
“It is currently expected that this capital raising will be initiated and completed (subject to, among other things, the approval of resolutions at the general meeting and the admission to listing and trading of the new ordinary shares to be issued as part of this capital raising) no later than April 30, 2026, so that the company can publish its audited financial results for the year ending December 31, 2025,” the statement notes.
The company does not intend to publish a prospectus in connection with the planned capital raising.
Ferrexpo noted that discussions are ongoing with the company’s largest shareholder—Fevamotinico Sarl, owned by Konstantin Zhevago, which currently holds 294,993,686 shares, representing 49.32%—regarding whether Fevamotinico will support the resolution at the general meeting.
The Board of Directors also warned that if the planned fundraising is not initiated and the share book is not finalized by April 30, the listing and trading of its shares will be suspended from 7:30 a.m. on May 1, 2026, until the completion of the audit and publication of the annual report and financial statements for 2025, which in itself will require the implementation of the relevant financing decision so that financial results can be prepared on a going-concern basis.
“Under this scenario, there can be no certainty regarding the expected timing of the lifting of the suspension of listing and the resumption of trading in the company’s shares, if it occurs at all,” the statement notes.
Ferrexpo shares fell 11.91% to 38.02 pence at the start of trading on Wednesday, corresponding to a market capitalization of GBP258.2 million.
