Netlinkz Ltd (ASX:NET) is offering eligible shareholders an opportunity to participate in a 1-for-4.2 pro-rata accelerated non-renounceable entitlement offer to raise $15 million.
This entitlement offer is fully underwritten by Shaw and Partners Ltd.
It comprises an offer to eligible institutional shareholders, which is due to settle on May 20, 2021, and an offer to eligible retail shareholders, which will be open from May 18 and scheduled to close at 5.00pm (AEST) on June 2.
Any variation of the closing date will be announced by Netlinkz on the ASX.
Further entitlement offer details
Under the entitlement offer, eligible shareholders will be entitled to subscribe for one fully paid ordinary share in the company (new share) for every 4.2 shares held.
The price payable on application for each new share is $0.025, which represents a 13.8% discount on the last closing price, a 19.2% discount on the volume-weighted average price (VWAP) for the five trading days prior to this announcement and a 22.1% discount on the VWAP for the 10 trading days prior to this announcement.
Further details of the entitlement offer (including key risks and an indicative timetable) are outlined in the prospectus as lodged with ASIC and ASX on 11 May 2021.
The prospectus, including entitlement and acceptance forms are expected to be despatched to eligible retail shareholders on May 18.
Use of funds
The $15 million raised through the entitlement offer will fund:
➢expansion capital investment in China;
➢general working capital expenditure;
➢repayment of outstanding convertible notes;
➢short term repayment of loan arrangements; and
➢costs of the offer.