StockMarketWire.com - Iofina announced plans to raise up to £7.5m through the placing of shares at a discount in an effort to accelerate its plant upgrading programme and pay down debt.

The issue price of 16p of the placed shares represented a discount of approximately 15.8% to the closing price of 19p per share on 17 May 2019.

In 2018, Iofina Resources saw crystalline iodine production climbed by 17% from 503MT to 588.8MT, driven by the improved efficiencies and the commissioning of the IO#7 plant.

In the second half of 2018, the group achieved record Iodine production of 324.7MT, which was an increase of 23% over the first half of the year.

'The company believes that the Group can expand its iodine production quicker and with less initial capital expenditure compared against its competitors,' the company said.

'The iodine market continues to strengthen and any increase in iodine prices will directly benefit the Group, specifically as a result of additional iodine production. Development of new, niche specialty chemical products is also a focus of the Group moving forward.'

The Group's strong operational gearing means that any increases in iodine production or price will have a quick and tangible benefit on the Company's profitability.

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