Australian Potash Ltd – To Raise Up To $5.2 Million
Monday, February 11th, 2019
Australian Potash Limited (ASX:APC) (APC or the Company) is pleased to announce that the Company has agreed to undertake a renounceable rights issue (Rights Issue) to raise up to approximately $5,229,824 before costs.
The Company intends to undertake a pro rata renounceable rights (or entitlements) issue to eligible shareholders to raise up to $5,229,824 (before the costs of the offer), comprising an offer on the basis of three (3) rights shares (Rights Shares) for every fourteen (14) existing shares held at an issue price of 8 cents ($0.08) per Rights Share, together with one (1) free attaching listed option (Rights Option) exercisable at 12 cents ($0.12) on or before 8 August 2021 for every four (4) Rights Shares subscribed. Shareholders of the Company will be afforded the opportunity to subscribe for Rights Shares in excess of their entitlement to the extent that there is a shortfall.
The Rights Issue is intended to be underwritten to $4.2 million by Patersons Securities Limited, who are also acting as Lead Manager to the Rights Issue.
The Company’s directors intend to participate in the Rights Issue.
The funds raised from the Rights Issue will be used to complete the definitive feasibility study for the Company’s high-grade, low cost Lake Wells Potash Project (LWPP), and for general working capital.
Further details will be provided in a prospectus (Prospectus) which is intended to be lodged with ASX on 13 February 2019.https://www.australianpotash.com.au