Element 25 Ltd (ASX:E25) has boosted its finances to the tune of $9.2 million through the set-off of 4.8 million collateral shares previously issued to Acuity Capital under a Controlled Placement Agreement.
These funds will be used for the planned stage-2 expansion of manganese concentrate production from the company’s 100%-owned Butcherbird Manganese Project in Western Australia.
They will also be used to accelerate feasibility study work for the production of battery-grade High Purity Manganese Sulphate (HPMSM) from the manganese concentrate produced in stage-2.
CPA terminated
The set-off shares reduce the total 4.8 million collateral shares which Acuity Capital is otherwise required to return to E25 upon termination of the CPA.
These set-off shares have a deemed price of $1.9167, which is a 6.5% discount to the 15-day VWAP of $2.0506 to May 5, 2021.
The set-off arrangement has enabled Element 25 to immediately terminate the CPA and there were no costs associated with terminating the CPA.
Shares have been almost 3.5% higher in early trade to $2.09 while E25's market cap is approximately $300.6 million.