Anson Resources Ltd (ASX:ASN) has launched a share purchase plan (SPP) offer to raise up to $2 million as part of a $3 million capital raising effort to advance its Paradox Brine Project in Utah, USA.
The SPP will be partially underwritten to $1 million by Pendragon Capital Limited and under ASX Listing Rules, the company can accept oversubscriptions up to the maximum amount allowed.
On completion of the SPP, Anson intends to offer shares under a top-up placement to professional and sophisticated investors at the same issue price as the SPP to raise a further $1 million.
SPP terms
Under the SPP eligible shareholders will be given the opportunity to purchase up to $30,000 worth of shares in the company at a discount and without incurring brokerage or transaction costs.
Applications may be made for parcels of shares in the amount of $1,000, $2,000, $5,000, $10,000, $15,000, $20,000, $25,000 or $30,000.
The funds raised will be used to advance the project pre-feasibility study, environmental studies, permitting, other exploration and for general working capital.
Shares under the top-up placement will be issued within Anson’s ASX Listing Rule 7.1 and 7.1A placement capacity.
SPP schedule
Anson will offer eligible shareholders who were registered as shareholders at 5.00pm WST on the record date of Monday, June 15, 2020, the opportunity to apply for new fully paid ordinary shares in the company under the SPP.
Full details of the SPP will be set out in a prospectus and personalised application form which the company expects to lodge with ASIC and ASX later today and send to eligible shareholders on or about Thursday, June 18, 2020.
The closing date is 5.00pm WST on Monday, July 6, with the results of the SPP offer to be announced on Thursday, July 9.
Anson plans to issue new shares under the SPP and top-up placement on Wednesday, July 15 with the trading of new shares to commence on Friday, July 17.
Pursuant to ASX Listing Rule 7.2, Exception 5, the company will not issue more than 30% of the shares on issue as at the closing date.
Underwriting fees
In consideration for partially underwriting the SPP offer, Anson has agreed to pay Pendragon an underwriting fee of 6% of the total gross amount underwritten by Pendragon.
The company will also issue Pendragon 5 million options exercisable at a price equal to 3 times the SPP issue price on or before June 30, 2023, subject to the gross amount actually underwritten by Pendragon being at least $750,000.
The options will be issued under the company’s placement capacity under ASX Listing Rule 7.1.