ASX-listed Tanzanian-focused flake graphite developer Volt Resources will be undertaking a 1 for 12.9 non-renounceable Rights Issue of ordinary shares to raise up to $1.250 million.
Under the Rights Issue, eligible shareholders will be entitled to apply for 1 new ordinary fully paid share for every 12.9 ordinary shares held as at 17h00 (EDST) on Friday 22 November 2019, being the record date for the Rights Issue.
The offer price of $0.01 (1.0 cent) represents a 23% discount to the last closing price of the company’s shares on ASX on 18 November 2019, and a 24.5% discount to 5-day VWAP price up until that date.
Chairman of Volt Resources, Asimwe Kabunga, via Kabunga Holdings, has agreed to underwrite up to $600,000 of any shortfall from the Rights Issue.
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New Shares not taken up by eligible shareholders will become available under a Shortfall facility.
Eligible shareholders who subscribe for their entitlement in full may apply for additional New Shares under the over-subscriptions facility.
The directors of Volt Resources that are eligible intend to participate in the Rights Issue.
Funds raised from the Rights Issue will be used to advance the approvals process of the respective Dar es Salaam (DSE) and the Stock Exchange of Mauritius (SEM) listed note issues, to meet existing payable obligations and for general corporate and working capital purposes.
In addition, Volt Resources will be reviewing its Australian based structure and activities to reduce expenditure, particularly whilst the Stage 1 Bunyu Project development funding activities are in progress.
To assist Volt Resources to meet its working capital requirements whilst the Rights Issue is completed, the company has secured $100,000 in short term working capital funding from the company’s chairman and CEO on an unsecured, arm’s length commercial terms basis, with such moneys being repayable on or before 31 December 2019.