Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF) has launched an entitlement offer to raise around $5.2 million, following a successful $15 million institutional placement.
Progression towards FID
The non-underwritten, standard pro rata, non-renounceable offer, is directed at existing eligible shareholders to further the company's progression towards a final investment decision for the Dubbo Project by meeting necessary co-commitments for government funding.
Each eligible shareholder can apply for one fully paid ordinary share for every 40 held at the record date, at an issue price of $1.16. For each share acquired, shareholders will also receive a free attaching option as detailed in the recently lodged prospectus with ASX.
Strong support has already been shown by major shareholders and directors, with pre-commitments amounting to around $1.4 million, led by chair and major shareholder Ian Gandel through Abbotsleigh Pty Ltd.
Confidence in project potential
The company says the support is testament to the confidence these stakeholders have in the long-term potential of ASM's critical metals projects.
Should there be any shortfall securities, ASM may place these within three months post-offer, at a board's discretion, with a price no less than the initial offer price.
The prospectus, released today, provides detailed participation instructions.
ASM also plans to offer up to 100 nominal options at no cost to selected investors to facilitate the secondary trading of options, mirroring the terms set in the April placement.