The Israeli diamond exploration company’s unit Shefa Yamim (A.T.M) will scale down its planned London floatation following an investment from GEM investment fund.
The Israeli diamonds and precious stones exploration company Shefa Yamim Ltd. (TASE: SEFA) has taken another step towards going public with its subsidiary on the London stock exchange.
Today, the company reported to the Tel Aviv Stock Exchange that its subsidiary Shefa Yamim (A.T.M) Ltd. has signed an agreement with international investment fund GEM, which committed to invest £7 million in Shefa Yamim in preparation for its London offering. After the announcement, Shefa Yamim’s share price rose 9%.
Shefa Yamim (A.T.M) is a private company 75% held by Shefa Yamim which carries out the company’s exploration of operations and holds the exploration permits along the Kishon River.
This agreement had followed Shefa Yamim’s plans to raise $10 million. Now, after the investment agreement with GEM, it intends to raise only $3 million in the planned offering
“The agreement with the GEM investment fund is part of the financing, planned as part of the offering of the subsidiary company on the London Stock Exchange,” said Shefa Yamim CEO Avraham Taub. “That is, we only have to complete the procedures and raise the remainder of the original sum during the offering – only $3 million.”
As for the London offering, Taub said, “As an Israeli company, London has opened its gates and welcomed us, as the British know, and we are highly optimistic.
With God’s help, raising the capital during the London offering will enable us to make rapid progress with implementing the scheduled working plans, including a financial feasibility check for the opening of the new mine; at the same time, it will prove us with leeway and an ability to carry out exploration in a quick and optimal manner in the permit areas where the company operates.