Corizon Limited extends the closing date of its offer

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Currently suspended, Corizon Limited (ASX: CIZ) once again extended the closing date of Public Offer and Shortfall Offer as per the Supplementary Prospectus lodged today, 6 December 2018.

This Supplementary Prospectus incorporates certain changes to the original prospectus the company had issued on 5 October 2018. The amendments have been made in respect of three key details that includes, timetable of the offer, minimum subscription of the offer and ASX listing conditions.

Closing Date of the Offer:

The Board of Corizon Limited advised that the date of closing public offer and the shortfall offer has been extended to 29 March 2019 from previously stated date of 7 December 2018. The company has already extended the closing date of the offer from original 1 November 2018 to 6 November 2018, then that to 20 November and recently to 7 December 2018.  

The extension of closing date in the offer somewhere reflects the company’s struggle in raising funds from investors. However, the company notified that till date 59,711,474 share applications have been received, representing $1,194,229.48 raising much below than the minimum subscription value.

Minimum Subscription:

In the original prospectus the company announced the entitlement offer to raise minimum $3,150,000 at a price of $0.02 per share. At that time, it also stated its intention to raise to an additional $500,000 through a public offer of up to 25,000,000 shares at an issue price of $0.02 per share.

But now as per the supplements made to the original prospectus, today, the minimum subscription value has been increased from $3,150,000 to $3,650,000. And the company further noted that if Corizon does not raise this revised minimum subscription within four months of Supplementary Prospectus, the company will return all the application money within the prescribed time but without interest.

Moreover, this offer is about the acquisition of 100% of issued capital in the RWG Minerals Pty Ltd. For Corizon to acquire RMG Minerals from GWR Group, the company needs to obtain minimum subscription and the ASX’s approval to be reinstated to its official list.

As per the company’s information, proceeds raised from the entitlement as well as public offer will be utilized to undertake exploration programs on tenements held by RWG and for other projects exploration and acquisition opportunities.

ASX Listing Condition:

The company stated three months as the timeline of share quotation admission has now been set from the date of the Supplementary Prospectus. That means the Quotation Condition must be satisfied by 6 March 2019, from the date of the Supplementary Prospectus three months being the date.

But it has been noted that although the company has made application for official listing to ASX within seven days of the issue of original prospectus, the ASX has yet not indicated that the company’s securities will be admitted to quotation, on a conditional basis or otherwise.

For the ones who have already applied to the existing offer of the company, Corizon has given a withdrawal option provided the notice to withdraw application is submitted by the existing applicant within one month, i.e. 6 December 2019.


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