The ASX-listed diamond junior’s rights issue closed on 24 March 2016, raising $451 734 via the entitlement offer to existing shareholders.
Placement of the rights issue shortfall completed on 24 June 2016, with 100% of the available shortfall shares successfully placed with sophisticated and professional investors, raising $3 572 944.
Just over 7 million of the shortfall shares were issued to Zhejiang Huitong Auction Co Ltd (Zhejiang), the lender of $13 million to Kimberley Diamonds.
The issue to Zhejiang was partly in payment of the interest. Kimberley Diamonds and Zhejiang have also agreed to vary the loan agreement to allow Zhejiang to convert approximately $180 000 of its loan to Kimberley Diamonds shares at $0.10.
The diamond junior now owes Zhejiang approximately $11.3 million.