Syrah (ASX:SYR) to raise $112 million via equity raising and convertible notes

December 10, 2020 02:02 PM AEDT | By Kunal Sawhney

Syrah (ASX:SYR) to raise $112 million via equity raising and convertible notes

Capital Raising Details

Syrah has fixed the offer price at A$0.90 per share to raise capital through fully underwritten placement, according to the latest update by Syrah Resources. The offer price is at a discount of 11.3 per cent to Syrah’s closing price of A$1.015 per share at December 8, 2020. Besides, it is at a discount of 11.2 per cent to Syrah’s 5-day VWAP of A$1.014 per share up to and including December 8.

READ MORE: Syrah (ASX:SYR) just a step away from vertical integration of Balama project

The placement will result in the issue of 62.2 million fresh shares. These shares, issued under the placement, are nearly 15 per cent of the company’s current ordinary shares outstanding. Credit Suisse and Foster Stockbroking are the joint lead managers and joint bookrunners to the placement. Credit Suisse is the only underwriter.

The SPP price will be A$0.90 per share, equal to the Offer Price of the Placement. Eligible shareholders will be invited to subscribe for up to a maximum of A$30k worth of additional shares.

Besides, the convertible notes would be issued in two equal tranches before March 31, 2021 and June 30, 2021 to AustralianSuper Pty Ltd as trustee for AustralianSuper. However, it would be subject to certain conditions and approval of shareholders.

Funds Utilisation

The company plans to use the proceeds of the placement to make progress on Syrah’s natural graphite Active Anode Material (AAM) facility in Vidalia, Louisiana, US. The raised capital is also expected to provide additional liquidity to manage a restart decision at Balama Graphite Project (Balama).

The convertible notes will provide more liquidity to manage the optimal timing of a Balama restart decision, Syrah Resources said.

Meanwhile, shares of Syrah Resources last traded at A$1.015.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.