VRX Silica (ASX: VRX) today announced a $3 million capital raising, comprising a placement of $1.5 million and a share purchase plan (SPP) of up to $1.5 million.
HIGHLIGHTS
Firm commitments received for a $1.5 million placement of new shares to institutional and sophisticated investors at 12c per share
$1.5 million SPP offer to eligible shareholders on the same terms
Placement and SPP shares offered with free-attaching options on a 1:2 basis, exercisable at 18c and expiring on 31 August 2025
Funds will be applied to further work and equipment purchases ahead of expected approvals at Arrowsmith North and further work at Muchea
Placement Details
The placement to new and existing sophisticated and professional investors will raise $1.5 million, before costs. It will comprise the issue of 12.5 million new fully paid ordinary VRX shares, utilising the company’s existing capacity under ASX Listing Rule 7.1, at a price of 12c per new share.
The offer price represents a 17.2% discount to the last closing price of 14.5c and 20.4% discount to the 5-day VWAP of 15.1c.
Participants in the placement will be entitled to subscribe for free-attaching options (described in further detail below).
Canaccord Genuity (Australia) Limited acted as Lead Manager to the capital raising.
Share Purchase Plan
In addition to the placement, the company is undertaking an SPP to eligible shareholders seeking to raise up to an additional $1.5 million. Eligible shareholders at the record date of 7:00pm (AEST) on 25 August 2023 with a registered address in Australia and New Zealand (Eligible Shareholders) will be invited to participate in the SPP.
The SPP will enable eligible shareholders to apply for up to $30,000 worth of new shares at the offer price of 12c per new share, being the same price as under the placement. The new shares under the SPP will be issued utilising the company’s existing capacity under ASX Listing Rule 7.1.
Participants in the SPP will be entitled to subscribe for free-attaching options (described in further detail below).
Further information in relation to the SPP, including the SPP terms and conditions and scale-back policy, will be outlined in the SPP offer booklet, expected to be released on Monday, 4 September 2023.
The company also reserves the right to place any shortfall under the SPP (at the same issue price) utilising its remaining capacity under ASX Listing Rule 7.1.
The SPP offer is expected to open on Monday, 4 September 2023 and close at 5:00pm (AEST) on Friday, 22 September 2023. The SPP offer is not underwritten.
The company reserves the right to vary the terms of the SPP and the above dates.
Free-attaching Options
The new shares under the placement and SPP are offered with one (1) free attaching option for every two (2) New Shares issued (Options).
The options will have an exercise price of 18c and will expire on 31 August 2025. The options will be offered under a transaction-specific prospectus.
The issue of options to participants in the placement and the SPP will be made utilising the company’s existing capacity under ASX Listing Rule 7.1. The options will not be quoted on ASX however the company reserves the right to seek quotation at a later date at its discretion.
Use of Funds
The funds raised under the capital raising will be used to fund further work and equipment purchases ahead of expected approvals at Arrowsmith North and further work at Muchea, and to fund general working capital and costs of the capital raising.
Capital raising timetable
*The company reserves the right to vary these times and dates (other than in respect of events that have already occurred) in its absolute discretion by sending a revised timetable to ASX. All times are AEST.
