Join our daily newsletter At The Bell to receive exclusive market insights
- Mining company Accelerate Resources (AX8) has raised just $98,835 in a $238,100 entitlement offer
- The company offered a pro-rata one-for-three non-renounceable entitlement offer at 1.2 cents per share, aiming to raise up to $238,100
- However, Accelerate Resources only received applications for over eight million shares from existing shareholders, raising a total of $98,835
- Following this, 11,605,404 unallocated shares now fall under a shortfall order, which accelerate says it will distribute in due course
- The company will use the funds for general working capital, and to support exploration activities at its projects
- Accelerate Resources shares are grey at market open, trading for 1.8 cents per share
Mining company Accelerate Resources (AX8) has raised just $98,835 in a $238,100 entitlement offer.
The offer was a pro-rata one-for-three non-renounceable entitlement offer at 1.2 cents per share. The company hoped that the entitlement offer would raise up to $238,100, before costs.
Accelerate Resources’ existing eligible shareholders submitted valid applications for 8,236,262 new shares. However, this only raised a total of $98,835; less than half of the company’s maximum projection.
Accelerate Resources’ Managing Director, Yaxi Zhan, commented on the response to the entitlement offer.
“On behalf of the board of directors, I would like to thank the existing shareholders for their support,” she said.
The company has advised in its announcement that the shortfall order is for a total of 11,605,404 shares. Accelerate Resources will allocate the shortfall order shares, in accordance with the relevant policy set out in the company’s prospectus of April 2020. This allocation will take place within three months of the entitlement offer’s closing date.
Prior to the Accelerate Resources’ entitlement offer, there were 59,525,000 existing shares on issue. Following the issue of Entitlement Offer shares to shareholders, there are now 67,761,262 total shares on issue.
The company has stated that it will use the funds raised by the rights issue for general working capital and to advance its projects. In particular, the funds will go towards supporting additional exploration activities on Accelerate Resources’ Tambellup Kaolin Project. Some may also go towards the company’s existing gold projects in Western Australia.
Accelerate Resources shares are grey at market open, trading for 1.8 cents per share at 10:36 am AEST.
