Real Estate Investar Group Limited had $1.4 million more in its pocket at the closure of Entitlement offer on 28 December 2018.
In today’s announcement to Australian Securities Exchange, property investment portal Real Estate Investar Group Limited (ASX: REV) told that the company has successfully raised $1.4 million from the pro rata 1-for-1 non-renounceable entitlement offer made at an issue price of $0.012 per new share.
The entitlement offer was fully guarded by the underwriters CAV Investment Holdings HK Limited and Atherley Investments Pty Ltd. But still, the company had accepted all the additional shares that shareholders have applied for beyond their entitlement.
Under the entitlement offer, eligible shareholders were offered to take up one new share for every one existing share they held on the record date of 11 December 2018. The issue price was set to $0.012 per new share, reflecting a 20% discount to the REV stock price of $0.015 on 28 November 2018.
Real Estate tabled a total number of 116,602,554 new shares in the offer; out of which 28,360,492 number of new shares were applied for by the shareholders and the shortfall of 88,242,062 new shares were taken up by the underwriters. That means the underwriter subscribed for $1.05 million value shares to meet the terms of underwriting agreement it has signed with Real Estate.
What is it going to do with these funds?
The company intends to shave off its debts and provide initial funding to make its first move in prop tech investments. It will not only leverage the current assets of the Group but will also strengthen the working capital and balance sheet of the company.
In settlement of the offer, the company proposes to allot new shares to shareholders by expected date of 7 January 2019. The company stated that the new shares would commence trading on a normal settlement basis on Tuesday 8 January 2019, subject to ASX approval.
Real Estate Investar offers online services through which investors get the news and information relating to the acquisition, identification, tracking and analysis of residential investment property.
Amid the recent meltdown of housing prices in Australia, the investors have glued to their chairs to track the regular price movement across their portfolio of residential property investments. The market trend expects the further sharper downturn in Australia’s residential properties, especially the ones in Sydney and Melbourne. Now, it would be interesting to watch whether the investors will brace themselves with the future slump and will sell their investment or would hit the iron rod to get hold of the new investment trading at their cheapest levels.
Currently, 3 January 2019, Real Estate Investar stock is trading flat. REV last traded at $0.012 with a market capitalization of $1.4 million. But over the past 12 months, the stock has fallen massively by 66.67%.
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