Suvo Strategic Minerals Ltd (ASX:SUV) has strengthened its capacity to develop and commercialise the Intellectual Property (IP) for low-carbon cement (green cement) on fielding firm commitments for $2 million in an oversubscribed placement at $0.048 per share.
The placement attracted the support of a number of existing investors and, significantly, shareholders of PERMAcast, Western Australia’s leading supplier of precast and prestressed concrete products, will take up 15%.
New shareholders welcomed
Suvo welcomes the shareholders of PERMAcast and other new institutional investors to its register as it drives development and commercialisation activities with respect to its licensed low-carbon cement IP.
Executive chairman Aaron Banks said: “On behalf of the board, I would like to thank our new and existing shareholders for their support in the placement.
"I would also like to welcome the shareholders of PERMAcast to the register as we progress commercialisation activities and implement the necessary strategies to deliver low carbon products and projects to market.
READ: Suvo Strategic Minerals turns nickel slag into high-strength, low-carbon cement
"The funds from the placement enable the company to further advance the opportunity with PT Huadi and progress the important second trials after successfully creating a geopolymer cement binder using a zero-carbon nickel slag.
"The company hopes to formalise a commercial arrangement with PT Huadi in the near term.
"We look forward to updating the market as we finalise some of these exciting new opportunities.”
Placement details
The company will issue 41,666,666 fully paid ordinary shares to new and existing institutional, professional and sophisticated investors, including 20,833,333 free attaching unquoted options exercisable at $0.075 with a two-year term.
The issue price of $0.048 per share represents a discount of 12.1% to the company’s 30-day volume weighted average price (VWAP) of $0.0546 and a 11.1% discount to the last close price of $0.054.
The issue of placement shares will be completed utilising the company’s Listing Rule 7.1 placement capacity (28,666,666 ordinary fully paid shares) and 7.1A placement capacity (13,000,000 fully paid ordinary shares).
Additionally, the free attaching options on a one-for-two basis will be issued using the company’s Listing Rule 7.1 placement capacity.
Settlement of funds under the placement is proposed for Monday, October 28, 2024, with the shares to be allotted on Tuesday, October 29, 2024.
Bell Potter Securities acted as lead manager to the placement.