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Fertoz Limited soars 52.5% on debut as investors embrace Canadian phosphate focus

Published: 15:50 02 Sep 2013 AEST

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Fertoz Limited (ASX: FTZ) may very well be the best performing IPO of the year, with the company trading at a 52.5% premium in its first hours of public life - on solid volume of nearly 500,000 shares.

Fertoz opened at $0.27 before spiking to $0.32, and last traded at $0.305 in intra-day afternoon trade.

The company raised $4 million in the recent IPO after issuing 20 million shares at $0.20, and raising this level of capital in the current markets is an achievement in itself.

The brisk trade in the company highlights the investor support they have for the Fertoz focus, which is to transition to a fertilizer producer initially supplying Canadian and U.S. markets, and will start its journey evaluating its exploration tenements.

These tenements include Wapiti, Barnes Lake and Crows Nest in Canada, with the company targeting any potential direct shipping ore projects with 24% to 28% phosphate rock, which is capable of generating early cash flow with relatively low capital costs.

Wapiti East is the company’s flagship project, and is proximate to transport and infrastructure associated with the coal mines at Tumbler Ridge.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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