Ora Banda Mining Ltd (ASX:OBM) has successfully completed the retail component of a 4-for-13 accelerated non-renounceable pro-rata entitlement offer, which completes its A$20 million equity fundraising.
The retail entitlement offer closed on March 17, 2022, pursuant to which Ora Banda will issue around 144.9 million new shares at A$0.05 per new share, to raise about A$7.25 million before costs.
With the entitlement offer raising A$15 million, in addition to the previously announced A$5 million placement to institutional investors, Ora Banda has raised a total of A$20 million before costs.
Proceeds from the equity raising, together with existing cash, will be used for exploration costs, drilling to progress resource development, operational improvements, working capital and offer costs.
Offer details
Ora Banda received valid applications from eligible retail shareholders for 23,344,180 new shares, being around 16% of the new shares available for issue under the retail entitlement offer and representing A$1,167,209 in proceeds.
This includes valid applications received under the shortfall facility detailed in the retail entitlement offer booklet.
A further 2,726,633 new shares were issued to Euroz Hartleys - as nominee for the purposes of s615 of the Corporations Act - to sell those new shares that would otherwise have been available to ineligible shareholders had they been eligible to participate in the retail entitlement offer.
The remaining shortfall under the retail entitlement offer comprising 118,860,136 new shares and raising A$5,943,006.80, was allocated pursuant to the underwriting agreement and sub-underwriting agreement.
Following the issue of the new shares pursuant to its sub-underwriting, Ora Banda’s major shareholder, Hawke’s Point and its associates are expected to increase their voting power in the company to 45.3%.
New shares to be issued today
The new shares under the retail entitlement offer, including new shares issued in accordance with the underwriting agreement and sub-underwriting agreement, are expected to be issued on March 24, 2022, and commence trading on a normal settlement basis on March 25, 2022.
The new shares will rank equally with fully paid ordinary Ora Banda shares as at their issue date.