Pure Alumina makes $1.25m SPP offer for HPA producer acquisition

  • Apr 26, 2019 AEST
  • Team Kalkine
Pure Alumina makes $1.25m SPP offer for HPA producer acquisition

Pure Alumina, formerly known as Hill End Gold Limited, is the premier supplier of purity alumina (HPA) and strategizes to build a facility using Polar’s patented technology to produce commercial volumes of HPA, with low capital and operating costs.

Pure Alumina Limited (ASX: PUA) has made an offer to eligible shareholders to be part of Share Purchase Plan (SPP) of circa $1.25 million which is with the Joint Underwriters - partially underwritten up to A$770,000 by Patersons Securities Limited and CPS Capital Group Pty Ltd.

The Joint Underwriters have the right to facilitate an additional top up placement to raise upto $500k, subject to the company having the available placement capacity pursuant to ASX Listing Rules 7.1 and 7.1A.

The offer price would be based on 20% discount to the volume-weighted average price (VWAP) of fully paid ordinary shares in the capital of the Company over the five trading days, prior to proposed Issue Dat i.e. 28 May 2019.

Pure Alumina intends to deploy the raised funds towards working capital requirements as Pure Alumina works to complete the transformational acquisition of Canadian-based high purity alumina (HPA) producer Polar Sapphire Limited (Polar Acquisition).

The SPP gives the opportunity for entitled shareholders to each subscribe for up to $15,000 worth of shares, subject to scale back, without incurring brokerage or transaction costs. Eligible shareholders are defined as the ones who hold shares with a registered address in Australia or New Zealand as at 7.00pm AEST on 18 April 2019 (Record Date).

The Joint Underwriters’ obligations to partially underwrite the SPP are to meet the following conditions: -

  1. The Company preparing a SPP and offer document that complies with all legal and regulatory requirements.
  2. The Joint Underwriters should be content with the details of the SPP and accompanying announcements to the ASX.
  3. The Joint Underwriters entering into sub-underwriting agreements.

The fees payable in equal parts to the Joint Underwriters are: -

  1. An underwriting/selling fee of 6% of the total amount raised under the SPP and if applicable the Top Up Placements
  2. A management fee of $20,000;
  3. 10,000,000 options to acquire Shares

Suggestive Timetable: (Source: - Company’s report)

If subscriptions under the SPP exceed A$1.25 million, the company may accept oversubscriptions up to the maximum number of shares that can be issued under the SPP, being 51,327,278.

The Company reserves a discrete right to scale back applications under the SPP in case of any discrepancy. For those shareholders holding less than a marketable parcel of Shares (i.e. holding a value less than A$500), the SPP also offers an opportunity to increase their shareholding to a marketable parcel.

The issued shared will rank equally with existing fully paid ordinary shares.

The company’s stock is trading flat at A$0.028 (as at 12:50 PM AEST, 26 April 2019). The stock has given a YTD return of 39.13% to its investors till date. The company has market capitalization of ~A$4.79 million with ~171.09 million outstanding shares.


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