Technology Minerals (LSE:TM1) failed to impress the market on Thursday as its shares nosedived, down 20% to 5.8p, as the company announced it will run a placing to fund the launch of its national resilience strategy and settle outstanding convertible loan notes.
The company added that it has agreed creditor settlement terms to reduce cash amounts payable by approximately £0.9m over the next 12 months, and the net placing proceeds will also help reduce aged creditors and strengthen the balance sheet.
"The expanded strategy represents an exciting and highly compelling step forward of our existing direction," Alex Stanbury said.
Meanwhile, Nick Bridle has been appointed Executive Director and Chief Operating Officer with immediate effect, and Robin Brundle will step down as a director on 8 June to focus on the group's 48.35% owned Recyclus subsidiary.
Strategic reset
In Thursday's statement, the small-cap said it is the board's ambition to transform Technology Minerals from an early-stage circular economy business into a diversified national resilience platform.
Its aim, it said, is to be "anchored in sovereign critical minerals supply, extended across autonomous systems capabilities, and structured to operate at the heart of the UK's strategic industrial base."
Moreover, it intends to be positioned "at the intersection of three of the most consequential trends of this decade: the re-armament of the West, the rapid proliferation of autonomous technologies, and the onshoring of critical supply chains."
The company added: "The three strategic pillars will involve investment into infrastructure and resilience technologies, as well as underlying resources and capabilities.
"Successful execution of this expanded strategy is expected to materially enhance the Company's operational scale, cash flow generation and attractiveness to international investors."
