Gemfields shareholders approve $30 million rights issue

LONDON - Gemfields Group Limited (JSE:GML / AIM:GEM) announced today that its shareholders have approved a fully underwritten Rights Issue aiming to raise approximately $30 million. The decision came during an Extraordinary General Meeting (EGM) held on Monday, with the intent to issue 556,203,396 New Shares.

The EGM saw a participation rate of 76.61% of the total voting shares, with the ordinary and special resolutions necessary for the Rights Issue passing by the required majority. The Rights Issue, initially announced on April 11, 2025, is set to proceed following shareholder approval and the expected publication of a Prospectus, which is scheduled for release tomorrow after final regulatory approvals from the Johannesburg Stock Exchange (JSE) and the Financial Conduct Authority (FCA).

The Rights Issue will offer 10 New Shares for every 21 existing shares at a price of 4.22 pence or ZAR1.06860 per New Share. Following the Rights Issue, the number of shares in issue will increase to 1,724,230,526. The company has confirmed that all conditions precedent for the Rights Issue have been fulfilled.

Key dates for the Rights Issue include the record date for shareholders to receive the Prospectus on May 15, 2025, and the Rights Issue opening on May 29, 2025. The Rights Issue is expected to close on June 12, 2025, with the results announced the following day. New Shares are set to be admitted to trading on the JSE on a deferred settlement basis starting June 10, 2025, and on AIM on June 13, 2025.

The Rights Issue is subject to certain restrictions relating to shareholders with registered addresses in the Excluded Territories, which will be detailed in the forthcoming Prospectus. Notably, no excess applications are allowed, meaning qualifying shareholders will not have the right to apply for any excess New Shares not taken up by others. Any New Shares not subscribed for will be taken up by the underwriters according to the Rights Issue and Underwriting Agreement terms.

This financial move by Gemfields is based on a press release statement and marks a significant capital raise for the company, which is known for its colored gemstone mining operations. The Rights Issue is a common method for companies to generate additional equity capital, and it allows current shareholders the opportunity to maintain their proportional ownership in the company.

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