Do You Know Why Aura Energy Shares Are Trading At Its 52-Week Low?

Do You Know Why Aura Energy Shares Are Trading At Its 52-Week Low?

Aura Energy resumed trading on ASX as the company released its pending capital raising announcement today on 5 February 2019. The company told that it has completed a placement of 61,062,500 shares to raise $0.977 million from sophisticated/ institutional investors. The news sent the stock price to plunge by 11.11% to trade at its 52-week low $0.016 on 5 February 2019 (2:46 PM AEST).

In the announcement to Australian Securities Exchange, exploration company Aura Energy Limited (ASX: AEE) informed that placement has been made at an issue price of 1.6 cents per share, representing an approximately 11% discount to the market price at the business close on 31 January 2019. 

Mr Peter Reeve, the Executive Chairman of Aura Energy, said “Aura has continued at every stage to purposely and methodically advance the individual elements of its Definitive Feasibility Study (DFS) at the Tiris Uranium Project and the Haggan Vanadium Project studies. As part of this approach, the Company has also recently signed a significant offtake agreement and commenced the process to secure an innovative financing solution for these development projects; both highlighting outstanding progress for the projects. This placement will continue to advance these activities as the Company moves towards production.”

The company informed that subscribers to the Placement would also receive 1 free attaching option for every three Placement Shares subscribed with each option exercisable at 2.2 cents and expiring two years from the date of issue; and 1 free loyalty option in exchange for every five Placement Shares subscribed with each option exercisable at 2.2 cents with an expiry of one year from the date of issue. The record date for placement loyalty option is fixed to 31 July 2019.

Going forward, the company intends to send a Share Purchase Plan (SPP) to shareholders with a registered address in Australia or New Zealand to offer them the opportunity to subscribe for shares together with an opportunity to acquire a loyalty option. The terms for subscription of SPP are set out to remain the same as in above-stated Placement.

Under the Share Purchase Plan, the shareholders will reportedly be entitled to acquire up to $15,000 worth of ordinary shares in the Company free of brokerage and fees. Further, the participants of SPP will also receive 1 free attaching option for every three shares subscribed for with each option exercisable at 2.2 cents and expiring two years from the date of issue, as per the report.

As per the company’s schedule, SPP will open on Monday, 11 February 2019 with the record date of 4 February 2019. The date for issue of shares in settlement of SPP is fixed to Tuesday, 12 March 2019.

Moreover, the company confirmed that both shares under the placement and Share Purchase Plan would rank equal to the existing ordinary shares of the company. AEE stock price has fallen by 25% over the past 12 months.


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