The non-renounceable pro-rata entitlement offer, and the shortfall offer announced by Coppermoly Limited (ASX: COY) on 23 November 2018 has finally come to an end on 21 December 2018.
On 23 November 2018, the company announced that those shareholders who hold three fully paid ordinary shares in Coppermoly as on 28 November 2018 will have an opportunity to acquire one new fully paid ordinary share at an issue price of A$0.007 per new share. It means that the new share was available at a discount of 42% based on the market price of the share on 22 November 2018.
The company also makes an offer to all eligible shareholders to subscribe new share which is not taken up by other shareholders.
These raised funds will be utilized in the additional exploration activity on the exploration licenses of Coppermoly’s Mt. Nakru during the calendar year 2019. The exploration activities include resource modeling, target generation, and extension drilling. This fund will further provide support in working capital requirement and other expenses during CY2019.
With the completion of the non-renounceable pro-rata entitlement offer, a total 345,381,843 new shares were taken up by the eligible shareholders which generated a revenue of $2,417,672.90. Further, the allotment of these new shares will take place on 2 January 2018, and its related holding statement will be dispatched on 3 January 2018.
By the end of the FY2018, the company incurred a net loss of $627,966. The balance sheet of Coppermoly Limited by the end of 30 June 2018, states that the company holds a position where it can manage its long-term debt as it maintains a net asset base of $12,895,026. However, the company might face the challenge in meeting the working capital requirements and clearing any short-term debt. It is because the total current asset of $1,850,963 which the company owns is very near to its total current liabilities of $1,765,890. Further, there is an increase in the accumulated losses as compared to the previous fiscal year which indicates the poor operating performance of the company. It also creates a negative impression amongst the investors and the shareholders as the total shareholder’s equity got eroded in the period. The total shareholder’s equity is worth $12,895,026.
There is an increase in the net cash and cash equivalent where the primary source of revenue was through the issue of shares. The net cash and cash equivalent by the end of the financial year 2018 were $1,615,735.
By the end of trading on 28 December 2018, the shares of COY traded flat on ASX. The stock traded last on Monday 17 December 2018 with the last traded price of A$0.010 with the market capitalization of $13.78 million.