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Keystone Law has acted for AIM-quoted client Iofina plc in connection with its recent £7 million fundraising and associated US$4.2 million debt for equity conversion. The fundraising was comprised of a placing with new institutional investors, a subscription by Iofina’s directors and an open offer to existing shareholders.

Iofina intends to utilise the net proceeds of the fundraising principally to: (i) accelerate the development and construction of a new iodine processing plant; (ii) extinguish its term loan facility; (iii) complete upgrades at its other plants to increase iodine production; and (iv) invest in new product development at its subsidiary, Iofina Chemical.

Iofina specialises in the exploration and production of iodine and high-quality specialty chemicals. Its business strategy is to identify, develop, build, own and operate iodine extraction plants currently focused in North America, based on its WET® IOsorb® technology. Iofina has recently established a subsidiary, IofinaEX, to explore the production of CBD oils (a mixture of cannabinoids including cannabidiol) and other valuable compounds and uses of industrial hemp.

The Keystone team was led by corporate lawyer Simon Holden.

Tom Becker, CEO and President of Iofina, commented:

Following our recent debt restructuring, this successful fundraising will allow us to meet the increasing demand for our iodine products and the growing applications in this sector. We are committed to new product development, whilst reducing our overall debt, which will strengthen the Group’s financial position. Simon’s AIM knowledge and experience assisted us greatly in navigating the fundraising process. We thank him for the considerable time and effort which he devoted to getting the transaction finished in such an expeditious manner.

Simon added:

To follow up the recent debt restructuring with such a successful fundraising, evidenced by several noteworthy institutional investors participating in the placing and the substantial take-up by existing shareholders in the open offer, shows the level of confidence investors have in Iofina and its first-class team of specialty chemical professionals. I am very grateful to be able to work with such a committed and dedicated group as they continue to lead Iofina from strength to strength.

Keystone’s corporate capabilities include one of the largest all-senior offerings in the UK, comprising 50 partner-level lawyers.