Australian Strategic Materials Ltd (ASX:ASM) directors have demonstrated their confidence in the company’s rare earth metals technology strategy by participating in a one for 14 pro-rata non-renounceable entitlement offer.
This entitlement offer raised more than $26.9 million and took the company's capital raising to almost $92 million after a placement to institutional and sophisticated investors brought in $65 million.
The company received applications from eligible shareholders for 5,608,145 new shares at A$4.80 per share in the offer, representing an approximate 65.23% take-up.
Change of director interests
On April 23, non-executive chairman Ian Gandel acquired a total of 2,105,611 million shares in the offer in two separate indirect interests for combined value of more than $10.1 million.
This increased the total number of securities held in one indirect interest to more than 29.84 million with a further 1,735,715 held in the other indirect interest.
Managing director David Woodall obtained 500 shares in an indirect interest, increasing the total number of securities held in that interest to 7,500.
Non-executive director Ian Chalmers acquired 5,217 shares valued at more than $25,000 in a direct interest and now holds 78,248 shares in that interest.
He also acquired a total of 76,040 shares in two separate indirect interests for a combined value of more than $365,000, increasing the total number of securities held in one indirect interest to more than 1.12 million with 18,101 now held in the other.
Non-executive director Gavin Smith acquired 2,283 shares in a direct interest with a total value of almost $11,000, increasing the number of securities held in that interest to 34,233.
Smith also acquired another 2,459 shares in an indirect interest with a value of more than $11,800, lifting the number held in that interest to 36,884.
Use of funds
Capital raising proceeds will provide funding for ASM to focus on advancing key workstreams including engineering and development of the Korean Metals Plant.
Funds will also be used for a FEED study for the Dubbo Project while also providing additional working capital and funding of corporate costs.
ASM directors thank shareholders for their continued support of the company, and again welcome new shareholders who participated in the capital raising.
New shares were expected to be issued on Friday, April 23, 2021, with normal trading of the new shares expected to begin on Monday, April 26, 2021.
ASM maintains the flexibility to place shortfall under the entitlement offer but has made no decision to do so at this stage.