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Salt Lake Potash Ltd - Successful Completion of Institutional Offer

RNS Number : 7605V
Salt Lake Potash Limited
11 August 2020

11 August 2020







Not for release to US wire services or distribution in the United States


Salt Lake Potash Limited (SO4 or the Company) is pleased to announce that it has successfully completed the institutional component of its A$98.5 million equity raising. The underwritten equity raising comprised the institutional component of the accelerated pro rata non-renounceable entitlement offer (Institutional Entitlement Offer) and the institutional placement (Placement) together with a retail component (Retail Entitlement Offer). Collectively the Institutional Entitlement Offer and Placement raised approximately A$71 million (together, the Institutional Offer).


§ Successful completion of the Institutional Offer for the issue of 142.1 million new ordinary shares to raise approximately A$71 million

§ The Institutional Offer was strongly supported by existing and new institutional investors from Australia and overseas

§ The A$27 million Retail Entitlement Offer will open on 14 August 2020 and is expected to close on 25 August 2020

§ Both the Institutional Offer and the Retail Entitlement Offer form part of the Company's fully underwritten A$98.5 million equity raising at A$0.50 per new SO4 ordinary share (New Share)

Institutional Offer

The Company has successfully completed the Institutional Offer of 142,083,323 New Shares, comprising 55,410,624 New Shares to be issued under the Institutional Entitlement Offer and 86,672,699 New Shares to be issued under the Placement (Placement Shares). The New Shares in the Company being issued under the Institutional Offer are expected to be issued on 17 August 2020.

The Placement Shares will be issued under Listing Rule 7.1 (51,447,505 shares) and Listing Rule 7.1A (35,225,194 shares). The Company has relied on temporary capital raising relief (ASX Class Waiver) which, amongst other things, permits it to include in its calculation of placement capacity for the purposes of ASX Listing Rule 7.1 the number of shares that are to be issued under the underwritten pro-rata entitlement offer. The ASX Waiver permitted the Company to issue an additional 16,560,273 Shares under the Placement. Following the issue of the Placement Shares the Company will have no remaining capacity under Listing Rule 7.1 and Listing Rule 7.1A.

Retail Entitlement Offer

The retail component of the Entitlement Offer will open on 14 August 2020 and is expected to close on 25 August 2020 with the latest time settlement of relevant CREST instructions for Depositary Interest (DI) holders under the Retail Entitlement Offer being 11.00am (BST) on Monday, 24 August 2020. Eligible retail shareholders with an address in Australia, New Zealand, or the United Kingdom will be invited to participate at the same offer ratio as the Institutional Entitlement Offer and will be able to subscribe for 1 New Share for every 3.2 shares held on the Record Date which, for DI holders, is the close of business on Monday, 10 August 2020. The Ex-Entitlement Date for the Retail Entitlement Offer is Tuesday, 11 August 2020. These New Shares are offered at the same application price as the Institutional Entitlement Offer of A$0.50 per New Share.

Eligible retail shareholders who have applied for their entitlement under the Retail Entitlement Offer will also be entitled to apply for additional New Shares over and above their entitlement with a right to apply for up to a maximum of 50% above their entitlement, subject to the Board's discretion to scale back applications for additional New Shares in accordance with the allocation policy to be detailed in the Retail Offer Booklet.

The Retail Offer Booklet, accompanied by a personalised entitlement and acceptance form, will be dispatched to eligible retail shareholders by no later than Friday, 14 August 2020. Eligible retail shareholders wishing to participate in the Retail Entitlement Offer should carefully read the Retail Offer Booklet and accompanying personalised entitlement and acceptance form.

Euroz Securities Limited and Canaccord Genuity Group Inc acted as joint lead managers, joint underwriters and bookrunners to the equity raising. Argonaut Limited acted as co-manager to the equity raising. Cenkos Securities Plc is the Company's United Kingdom Corporate Broker.

The voluntary halt of trading of the Company's shares on ASX was lifted prior to the opening of trade on 11 August 2020, following an announcement to the ASX market regarding the above.

Settlement and Dealings

Application will be made to the AIM Market of  London Stock Exchange Plc (AIM) for the admission of the 142,083,323 New Shares being issued under the Institutional Offer, which rank pari passu with the Company's existing issued Ordinary Shares, to be admitted to trading. Dealings on AIM are expected to commence at 8:00am on or around 17 August 2020 (Admission).

Total Voting Rights

For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules (DTRs), following Admission, Salt Lake will have 495,369,163 Ordinary Shares in issue with voting rights attached. Salt Lake does not hold any shares in treasury. This figure of 495,369,163 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.

Directors' subscription

The following directors have subscribed for shares under the Institutional Entitlement Offer:


Existing Shares

Shares subscribed for

Resultant holding

Percentage of voting rights

Ian Middlemas





Tony Swiericzuk






For further information please visit https://www.so4.com.au/asx-announcements/  or contact:


Tony Swiericzuk / Richard Knights

Salt Lake Potash Limited

Tel: +61 8 6559 5800

Colin Aaronson / Seamus Fricker

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee / Peter Lynch

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Rupert Fane / Ernest Bell

Hannam & Partners (Joint Broker)

Tel: +44 (0) 20 7907 8500


This announcement has been authorised for release by the Board of Directors.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Not for release to US wire services or distribution in the United States.

This announcement has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws.

Forward Looking Statements

This announcement may include forward-looking statements. These forward-looking statements are based on Salt Lake Potash Limited's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Salt Lake Potash Limited, which could cause actual results to differ materially from such statements. Salt Lake Potash Limited makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

Quick facts: Salt Lake Potash Ltd

Price: 28.5

Market: AIM
Market Cap: £166.81 m

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