Cervantes Corporation Ltd (ASX:CVS) has undertaken a non-renounceable entitlement issue of up to 268,004,155 new fully paid shares at a price of 0.3 cents each to raise up to $804,012 before costs.
This entitlement issue will also comprise free attaching options on a one-for-two basis with an exercise price of 1 cent per option and an expiry date of three years from the date of issue.
The 1:2 right issue has been fully underwritten by Westar Capital Limited.
Recapitalisation strategy
This issue forms part of Cervantes plan to undertake a recapitalisation strategy through a series of equity raisings.
The company aims to raise a total of $3,366,512 as detailed below:
- $804,012 through a fully underwritten 1:2 rights issue to existing shareholders at an issue price of 0.3 cents per share, together with a 1:2 free attaching listed option exercisable within three years from the date of issue at 1 cent;
- up to $2.25 million through a fully underwritten placement of shares at 0.3 cents per share, together with a 1:2 free attaching listed option on the same terms as the rights issue; and
- $312,500 through a placement of options at an issue price of 0.05 cents per option. These options will be exercisable on the same terms as the rights and placement issues.