Wasabi Energy raising $9.8 million in a placement and partially underwritten rights issue with UK institutional investors and a rights issue with current shareholders.
Reported by the company this morning, Wasabi Energy announces that it is raising up to $9.8 million through placing for $5.1 million and a partially underwritten rights issue to raise up to $4.7 million.
The placing is with UK institutional investors for 300,000,000 new Ordinary Shares at a placing price of 1.1p per share (approximately 1.7 Australian cents ii) to raise gross proceeds of approximately $5.1 m (£3.3m) ($4.7m (£3.03m) net of expenses). Application has been made for the Placing Shares to be admitted to AIM. It is expected that the Placing Shares will be Admitted to AIM and that trading will commence on 2 July.
In addition the Directors of the Company are pleased to offer shareholders the opportunity to
participate in the funding of the Company at the Placing Price by way of a non?renounceable rights issue on the basis of one new ordinary share for every ten ordinary shares held. The Company will raise up to $4.7 m (£3.03 m) gross proceeds from the Rights Issue including $2.5m being underwritten by the Chairman, John Byrne (and his associates), (comprising an underwriting of $2.13m and the take up in full of his entitlement of $370,000) and $100,000 by Robert Vallender, a Director of the Company. Further details of the Placing and the Rights Issue are presented below.
An Offer Document containing the terms and conditions of the Rights Issue and information on the Company will be sent to Shareholders and made available on the Company’s website,
www.wasabienergy.com, shortly. In the meantime, the Offer Document has been lodged with the ASX and is available on the ASX website at www.asx.com.au.
The Placing and underwritten element of the Rights Issue will raise $7.7m in aggregate. If the Offer is fully subscribed then the aggregate amount raised by the Placing and Rights Issue will be $9.8m.
On 15 May 2012 the Company issued a corporate update on its major projects and investments and progress on its stated strategy to become an independent power producer through the
establishment of Kalina Cycle plants. The Company made a further announcement on 23 May 2012 in relation to the purchase of an option to acquire 50% of the Tuzla Geothermal Power Project.
Proceeds from the Placing and Rights Issue will be applied to fund further investment in its main projects as well as for working capital purposes and for the partial repayment of loans due to a Director.
Commenting, John Byrne, Executive Chairman said: “We are very pleased by the strong support shown by our UK based institutional shareholders who have participated in the Placing. In a difficult market, their vision to support the growth of the Company as we strive towards being an independent power producer is encouraging. With the recent announcement of the second plant by FLSmidth in the cement sector, and the implementation of high renewable energy feed in tariffs in Japan, including between 32c and 55c per kWh for geothermal energy, there continues to be momentum for a new generation of power production. This momentum, when allied with our opportunities in Turkey, South Africa and elsewhere provide a solid outlook for the implementation of the Kalina Cycle® globally. “
For further details see link below.
Source: Company release (pdf)