Agrimin (ASX:AMN) - CEO, Mark Savich
CEO, Mark Savich
Source: Mark Savich/Twitter
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  • Fertiliser development company Agrimin (AMN) plans to raise $7 million via a $5 million placement and a $2 million share purchase plan (SPP)
  • AMN intends to issue bonus shares to eligible shareholders to recognise the progress the company has made on its Mackay Potash Project and encourage greater liquidity in the trading of AMN shares
  • Agrimin says it is well-funded to progress its flagship Mackay Potash Project to being fully permitted and a final investment decision in 2022
  • Shares in Agrimin close 2.35 per cent lower this afternoon at 42 cents each

Following a trading halt earlier in the week, fertiliser development company Agrimin (AMN) has announced plans to raise $7 million via a placement and share purchase plan (SPP).

AMN said the proceeds will fund ongoing financing activities for its Mackay Potash Project, as well as front end engineering design work, project tenure, environmental approvals and general working capital.

Under the placement, the company plans to issue roughly 14.3 million shares at 35 cents each to raise $5 million.

The issue price represents a 17.6-per-cent discount to AMN’s last traded share price of 42.5 cents and a 19.6-per-cent to its five-day volume-weighted average share price of 43.5 cents.

Settlement of the placement is expected around February 11.

The company plans to raise the remaining $2 million by undertaking a non-underwritten SPP in which it will issue up to roughly 5.7 million ordinary shares at 35 cents per new share.

The SPP will enable existing eligible shareholders, irrespective of the size of their holding, to participate in the capital raising at the same issue price as the placement, and not incur any brokerage or transaction costs.

Eligible shareholders will have the opportunity to apply for up to $30,000 worth of new shares.

Agrimin intends to issue bonus shares to eligible shareholders to recognise the progress that the company has made on its Mackay Potash Project.

The bonus issue will also expand the company’s share base and is intended to encourage greater liquidity in the trading of the company’s shares.

Eligible shareholders as of March 17 will be issued one new fully paid ordinary share for every five fully paid ordinary shares held.

The bonus issue will result in up to approximately 46 million ordinary shares being issued for nil consideration, though this will be subject to the number of shares issued under the SPP.

Agrimin CEO Mark Savich said the capital raise followed a recent $2 million grant from the Australian government.

“We strongly believe the company’s current market capitalisation does not reflect the value that’s been added as the company nears a final investment decision for what will be the world’s largest and lowest-cost seaborne supply of sulphate of potash,” Mr Savich said.

The company said it was well-funded for the year ahead as it progresses its flagship Mackay Potash Project to being fully permitted and a final investment decision this year.

Shares in Agrimin closed 2.35 per cent lower this afternoon at 42 cents each.

AMN by the numbers
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