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Skin Elements (ASX:SKN) to raise ~AU$1.5 million to accelerate its business plans

October 26, 2022 11:56 AM +04 | By Aditi Sarkar
 Skin Elements (ASX:SKN) to raise ~AU$1.5 million to accelerate its business plans
Image source: © Kikkerdirk | Megapixl.com

Highlights

  • Skin Elements is raising funds via a combination of placement and entitlement issue.
  • SKN will raise AU$700k in cash (before costs) via a private placement to sophisticated investors
  • The Entitlement Issue will see the company raise up to AU$776,891 (before costs).

Australia based natural skincare company Skin Elements Limited (ASX:SKN) is raising funds via a combination of placement and entitlement issue.

The company focused on commercialising its plant-based anti-microbial SE FormulaTM will raise up to AU$1.5 million in working capital. The money will be used to fund its stated business plans, including commercialising its all natural plant-based SE Formula anti-microbial technology.

Placement

Skin Elements will issue 28,000,000 ordinary fully paid shares at AU$0.025 each. It will have one attaching option exercisable at AU$0.05 on or before 31 October 2025 for each new share. The private placement to sophisticated investors will raise AU$700k in cash (before costs).

EverBlu Capital Pty Ltd, the lead manager of placement, will receive a 6% fee of the total funds raised. It will also receive 2M ordinary fully paid shares and 28M options (exercisable at AU$0.05 on or before 31 October 2025.

Entitlement Issue

As announced previously, the company plans to proceed with a non-renounceable pro rata entitlement issue upon completion of the placement. The revised entitlement issue will proceed based on:

Data source: Company update
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The proposed entitlement issue is not underwritten. The revised indicative entitlements issue timetable is as follows.

Data source: Company update
© 2022 Kalkine Media®

The company will release further details regarding the entitlement issue in a prospectus in accordance with the revised timetable.

Issue of Shares for Corporate Services

For corporate services, the company will use LR7.1 placement capacity and has agreed to issue 1,691,556 ordinary fully paid shares to Indian Ocean Securities Pty Ltd for corporate advisory services and 1,216,075 ordinary fully paid shares to Mandate Corporate Pty Ltd for corporate communications services.

Shares of Skin Elements closed on Wednesday,26 Oct at AU$0.029.


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