Image Source: OBM Presentation 22 February 2022
- OBM has successfully concluded the retail component of its non-renounceable Entitlement Offer under an AU$20 million equity raising.
- The funds raised will be used to finance various exploration works as well as working capital needs and offer costs.
- Hawke’s Point and its associates are expected to increase their voting power in OBM to 45.3%, subsequent to the issue of new shares.
Ora Banda Mining Ltd (ASX:OBM) has finalised the retail component of its 4 for 13 accelerated non-renounceable pro-rata entitlement offer, which marks the completion of the AU$20 million equity raising.
OBM launched the AU$20 million equity raising on 22 February 2022 and has already completed the placement component worth AU$5 million and an institutional entitlement offer bookbuild worth AU$7.7 million.
The Company will now issue around 144.9 million New Shares at an offer price of AU$0.05 per new share to raise around AU$7.25 million (before costs).
OBM has received valid applications from eligible retail shareholders for 23,344,180 New Shares, which is around 16% of the new shares available for issue under the retail entitlement offer worth AU$1,167,209. This also encompasses valid applications received under the shortfall facility.
Source: OBM Announcement 22/02/22
OBM issued an additional 2,726,633 new shares to Euroz Hartleys to sell the new shares that would otherwise have been available to ineligible shareholders in case they had been eligible to take part in the retail entitlement offer.
The remaining shortfall under the retail entitlement offer for around 118,860,136 new shares and raising proceeds worth approximately AU$5,943,006 was allocated pursuant to the Underwriting Agreement and Sub-Underwriting Agreement.
The voting power of Hawke’s Point and its associates in OBM is expected to increase to 45.3% subsequent to the issuance of new shares pursuant to its sub-underwriting.
OBM’s current capital raising is worth AU$20 million, which comprises the earlier declared AU$5 million placement to institutional investors and the entitlement offer, which raised AU$15 million.
OBM looks to issue new shares under the retail entitlement offer on 24 March 2022, which will rank equally with fully paid ordinary OBM shares as at their issue date. Moreover, the shares issued on 24 March will begin trading on a normal settlement basis on 25 March 2022.
OBM stock was noted at AU$0.053 on 24 March 2022.
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