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Highlights
- Share Price Surge: Terragen Holdings experienced a 38.9% jump in its share price, reaching 5 cents during early trading hours on December 9, 2024.
- Equity Raising Success: The company successfully raised $4.76 million in gross proceeds from its Equity Raising, driven by strong support from new and existing institutional investors.
Terragen Holdings Limited (ASX:TGH) saw a remarkable 38.9% increase in its share price, which reached 5 cents per share during the early trading hours on 9 December 2024. This sharp rise follows the company’s successful completion of an institutional equity raising, which raised $4.76 million in gross proceeds.
Successful Completion of Equity Raising
The equity raising, which received strong support from both new and existing institutional investors, was divided into two main components:
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Institutional Offer
- The company raised $3.22 million through the issuance of approximately 91.96 million new shares priced at $0.035 per share, which represents a 2% discount to the theoretical ex-rights price (TERP).
- The institutional offer included:
- Placement: The issuance of 22.10 million shares within Terragen's existing placement capacity, as per ASX Listing Rule 7.1.
- Institutional Entitlement Offer: The offer raised $2.44 million through the issuance of 69.85 million shares, with a 74% take-up rate by eligible institutional shareholders.
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Retail Entitlement Offer
- A further $1.54 million is expected to be raised through the fully underwritten Retail Entitlement Offer, managed by Morgans Corporate Limited.
- Eligible retail shareholders will have the opportunity to participate at the same offer price and ratio, with an additional "top-up" facility available for those seeking to acquire more shares.
Prominent Participants in the Offer
Key players in the institutional offer included Scobie Ward, a major shareholder and director, who committed $1.34 million to subscribe to his full entitlement. This investment will increase his voting power from 33.3% to 34.9%. In the event of no retail participation, his stake could rise even further to 39.8%.
Sub-underwriting commitments were also made by other prominent individuals and entities, including:
- Ceres Capital Pty Ltd ($50,000)
- Director Mike Barry ($50,000)
- Director Richard Norton ($20,000)
- Director Andrew Guthrie ($10,000)
- CFO Matthew Whyte ($20,000)
Positive Market Reaction
The equity raising's strong institutional backing has been well-received by the market. Following the announcement, Terragen's shares surged nearly 40%, signaling investor confidence in the company’s future growth prospects. This enthusiasm highlights the growing support from institutional investors and major shareholders, boosting the company’s momentum.
About Terragen Holdings
Terragen Holdings specializes in the development of innovative biological products aimed at improving animal and plant health. Its solutions are designed to enhance agricultural yields and promote sustainable practices, helping to decarbonize the farming sector. With the successful completion of this equity raising, Terragen is positioned to accelerate its growth and expand its impact within the sustainable agriculture industry.
