AUS
NZ
UK
CA
USA
IND
Volt Resources Limited (ASX: VRC), a mineral exploration and development company targeting short term production of flake graphite from its flagship asset, the Bunyu Graphite Project (100%-owned) in Tanzania, informed on 16 December 2019, that its 1 for 12.9 non-renounceable Rights Issue closed on 13 December 2019, raising approximately $ 612,907.
The Rights Issue was launched on 19 November 2019 at an offer price of $ 0.01 (1.0 cent) representing-
- a 23% discount to the last closing price of Volt Resourcesâ shares on 18 November 2019, and
- a 24.5% discount to 5-day VWAP price up until that date.
Around 125,096,172 shares were offered under the Rights Issue and Volt received acceptances in respect of 61,290,723 shares, resulting in a shortfall of 63,805,449 shares. Kabunga Holdings Pty Ltd is the underwriter to the Rights Issue. Kabunga Holdings Pty Ltd is controlled by Voltâs Chairman, Mr Asimwe Kabunga,
Volt Resources also added that the company will be issuing a notice to the Underwriter stating the number of Shortfall Shares for the Underwriter to make application for the Shortfall Shares up to the underwritten amount, which is $ 600,000 (60,000,000 new shares). Following the receipt of this payment, Volt Resources will have raised $ 1,212,907 from the Rights Issue.
The scheduled date for the issue of new shares under the Rights Issue is 17 December 2019 and the shares would likely start trading from the next day onward.
As previously stated, the funds that have been raised from the Rights Issue would be utilised to advance approvals for the Dar es Salaam (DSE) and the Stock Exchange of Mauritius (SEM) listed note issues, to pay off the current obligations as well as for working capital requirements. In addition, the company would be conducting a review of its structure and activities in Australia to reduce expenditure, especially at the backdrop of the ongoing Stage 1 Bunyu Project development funding activities.
Stock Performance: Volt Resources has a market capitalization of ~ AUD 16.14 million with ~ 1.61 billion shares outstanding. On 17 December 2019, the VRC stock price settled the day's trading at AUD 0.010.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.
