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Highlights
- Neometals will issue 44,444,445 new shares at AU$0.09 each, aiming to raise approximately AU$4 million through a placement.
- Neometals is also launching a 1 for 12 pro-rata, non-renounceable entitlement offer for eligible shareholders in Australia and New Zealand, seeking to raise an additional AU$5 million.
- The funds raised will support the development of lithium-ion battery recycling technology, research in lithium and vanadium, investment in the Barrambie Gold and Titanium project, and cover general administrative costs.
Neometals Ltd (ASX:NMT & LSE:NMT), a developer of sustainable process technology, has announced two significant financial initiatives: a placement of new shares and a subsequent entitlement offer aimed at raising a total of approximately AU$9 million.
Placement Details
- Placement Size: Neometals will issue 44,444,445 new fully paid ordinary shares at AU$0.09 each, raising approximately AU$4 million before costs.
- Share Issuance: This placement will occur under the company’s ASX Listing Rule 7.1 placement capacity, equating to about 6.4% of the existing share capital prior to this issuance.
- Equity Ranking: New shares will rank equally with existing ordinary shares from the date of issue.
- Settlement Schedule:
- Settlement is set for October 17, 2024.
- Allotment and normal trading of the new shares are expected to commence on October 18, 2024.
- Entitlement to Other Offers: New shares issued will not have rights to participate in any upcoming entitlement offer.
Neometals’ ordinary shares are expected to resume trading on the ASX from the market opening on the day of the announcement.
Admission to Trading on AIM
An application for the admission of the new shares to trading on AIM has been made, with admission anticipated around 8:00 a.m. on October 17, 2024. Following this, the total number of ordinary shares in issue will rise to 734,342,539, with no shares held in treasury. This figure will be significant for shareholders regarding any necessary notifications of interest changes under the FCA's Disclosure Guidance and Transparency Rules.
Entitlement Offer
In conjunction with the placement, Neometals is also launching a 1 for 12 pro-rata non-underwritten and non-renounceable entitlement offer aimed at eligible shareholders in Australia and New Zealand, intending to raise up to an additional AU$5 million.
- Director Participation: All Neometals Directors plan to participate in the entitlement offer directly or through related entities.
- Details of the Offer:
- An entitlement offer booklet (Offer Booklet) will be provided to eligible shareholders by October 21, 2024.
- Eligible shareholders must be registered as of 5 p.m. (Perth time) on October 16, 2024, to participate.
- The entitlement offer will open on October 21, 2024, and close at 5 p.m. (Perth time) on October 30, 2024, unless extended.
- Since the offer is non-renounceable, entitlements cannot be traded or transferred.
- Eligible shareholders can also apply for additional shares beyond their entitlement at the same offer price.
Use of Funds
The proceeds from both the placement and entitlement offer, alongside existing cash reserves, will be primarily allocated to the following areas:
- Development of lithium-ion battery (LiB) recycling technology.
- Ongoing research and development for lithium and vanadium technologies.
- Investment in the Barrambie Gold and Titanium project.
- Covering staff, general, and administrative costs.
