On 23 October 2018, IMF Bentham Limited (ASX: IMF) announced that it is launching a fully underwritten institutional placement to raise A$74.48 million. Through the placement, the company is planning to issue 26.6 million new IMF ordinary shares. The placement is underwritten by Euroz Securities Limited at a price of A$2.80 per share. Following this news, the company also released its investor presentation in relation to the underwritten institutional placement. The company is currently trading at a halt as on 23 October 2018.
The Placement is representing approximately 15 percent of the current number of ordinary shares on issue. The placement price is representing 10 percent discount to the closing price of A$3.11 per share on 22 October 2018 being the last trading day prior to an announcement of the Placement.
The company is also planning to conduct a non-underwritten Share Purchase Plan (SPP). This will facilitate retail shareholder participation of up to AUD$15,000 per eligible shareholder at the Placement Price, subject to an overall cap of AUD$10 million.
IMF Bentham Limited is undertaking the Equity Raising for the purpose of funding growth initiatives. As per IMF’s Managing Director, Andrew Saker, the Equity Raising will allow the company to avail the benefits of the numerous opportunities that are currently before IMF. He further added that the greater financial flexibility will help the company to pursue other growth prospects, including a footprint in continental Europe and expanding existing operations in Asia and Canada.
The Proceeds raised under the Equity Raising will be used to fund establishment costs for new US fund and non-US fund, fund IMF’s capital commitments to the New Funds and pursue growth plans including a footprint in continental Europe and expanding existing operations in Asia and Canada. The funds will also be used for general corporate purposes including working capital, transaction costs, and potential bond redemptions.
The company is also proposing to amend the terms of the existing IMF Bonds and undertake a conditional placement of additional bonds up to the existing Secured Debt Limit of A$150 million. The proceeds the proposed Conditional Bond Placement will be used to fund potential bond redemptions and general corporate purpose. The company is in discussions to potentially amend the terms of the IMF Bonds which are scheduled to mature on 30 June 2019. The main objective behind the Bond Amendment Proposal is to extend the term and flexibility of the IMF Bond and reset the margin to market.
As at 30 September 2018, the investment portfolio of the company is comprised of 74 active investments, spread between the balance sheet and fund structures and the company is having a strong pipeline with over 200 matters in due diligence and 5 conditionally funded investments. IMF’s shares last traded at $3.110 with a market capitalization of circa $551.8 million as on 23 October 2018 (AEST 1:07 PM).
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