AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- VRX Silica has launched a renounceable pro-rata entitlement issue to raise approximately AU$3.14 million.
- The funds raised from the offer will primarily support developments across the Muchea project, Arrowsmith North project, and VDT trials and environmental follow-up.
- Canaccord will act as the lead manager and underwriter for the offer.
VRX Silica Limited (ASX: VRX) is initiating a renounceable pro-rata entitlement issue for eligible shareholders. Through this offer, the company seeks to raise approximately AU$3.14 million (before expenses).
The funds raised will be applied to advance the Muchea project, Arrowsmith North project and VDT trials and environmental follow-up.
Details of the entitlement offer
This initiative offers one new fully paid ordinary share in the company for every 13 shares held on the record date, priced at AU$0.07 apiece. Additionally, shareholders will receive one free attaching option for every two new shares a participant has subscribed for. These attaching options come with an exercise price of AU$0.18 each and expire on 31 August 2025.
Record date of the offer is 15 April 2024 and closing date is 30 April 2024.
The issue price of AU$0.07 per share represents a discount of 22.2% to the last closing price on 5 April 2024 of AU$0.09 per share, discount of 18.7% to the 5-day VWAP and discount of 19.9% to the 15-day VWAP.
Canaccord will serve as the underwriter and the lead manager for the offer. As part of this role, Canaccord is eligible to receive a total fee of 6% of the gross proceeds from the offer, in addition to a corporate advisory fee of AU$75,000.
Fund deployment plan
Funds raised from the offer are panned to be used in the following manner-
Image source: Company update
VRX shares traded at AU$0.075 apiece at the time of writing on 10 April 2024.
