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American Pacific Borates (ASX:ABR) - CEO, Henri Tausch (right)
CEO, Henri Tausch (right)
Source: LKAB Minerals
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  • American Pacific Borates (ABR) raises $37 million through a placement to three global institutional investors
  • The company, which is looking to position itself as a producer of speciality fertilisers, issued just over 17.6 million ordinary shares at $2.10 each
  • In a statement to the market, ABR says the proceeds will be used to strengthen its balance sheet ahead of its proposed listing on the NASDAQ
  • ABR’s listing on the NASDAQ, which will coincide with a name change to 5E Advanced Materials, is due to be completed late this year or early next year
  • Shares in American Pacific Borates are down 7.5 per cent to $2.22 as of 11:33 am AEDT

American Pacific Borates (ABR) has raised $37 million through a placement to three global institutional investors.

The company, which is looking to position itself as a producer of speciality fertilisers, issued just over 17.6 million ordinary shares at $2.10 each.

This price represents a 12.5 per cent discount to ABR’s last closing price of $2.40 per share on November 22 and a 1.5 per cent discount to the company’s 15-day volume-weighted average share price.

In a statement to the market this morning, ABR said the proceeds will be used to strengthen its balance sheet ahead of its proposed listing on the NASDAQ.

Some funds will also be set aside to advance engineering work, complete a Bankable Feasibility Study (BFS), and pursue construction of the Fort Cady Integrated Boron Facility located in Southern California, USA.

Chief executive Henri Tausch said he was pleased to “opportunistically” strengthen the company’s balance sheet.

“We are also pleased by the non-solicited level of interest from these strong investment groups, including a North American family office,” Mr Tausch said.

“We have a top-tier boron and lithium project with substantial reserves and permits in place, a proven team, and a strong balance sheet to finance such efforts.”

Citing a tightening US borate market and the resulting lofty prices, ABR revealed its intention to list on the NASDAQ in mid-December last year.

“This workstream is a priority for the company given the location of its projects and majority of its management, the likely scenario that all products will be sold into the US, and the current valuations of US listed speciality industrial minerals companies,” ABR said in a statement at the time.

At the start of October this year, ABR said the secondary listing would be undertaken through a direct listing on the NASDAQ, under which 5E Advanced Materials would effectively acquire and become the parent company of ABR, and ABR would change its name to 5E Advanced Materials.

According to today’s announcement, ABR’s NASDAQ listing remains on track for late December this year or early next year.

Shares in American Pacific Borates are down 7.5 per cent to $2.22 as of 11:33 am AEDT.

ABR by the numbers
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