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  • Vehicle lender Carly Holdings (CL8) is conducting a renounceable rights issue, in hopes of raising up to $3.39 million
  • Shareholders can buy three new company shares for every four shares they already hold, at eight cents per share
  • Some major Carly shareholders have already confirmed plans to take up their rights under the issue, worth over $1.5 million
  • Proceeds from the rights issue will be used to accelerate growth in supplying available vehicles for subscription
  • Carly Holdings is down 10 per cent and trading at nine cents per share

Vehicle lender Carly Holdings (CL8) is conducting a renounceable rights issue, in hopes of raising up to $3.39 million.

Under the rights issue, eligible shareholders will be able to buy three new company shares for every four shares they already hold. 

The shares will be offered at an issue price of eight cents each, representing a 20 per cent discount to Carly Holdings’ last closing price of 10 cents. The issue price also represents a 27 per cent discount on the company’s 30-day volume-weighted average price.

For every three new shares bought under the rights issue, shareholders will receive one free attaching new option in the company. The options will be exercisable at 16 cents each, until May 31 2023. 

Shareholders in Carly Holdings can also trade their rights and apply for additional shares and options, if they wish. The company expects that shareholders will be able to start trading their rights from April 19 2021.

A number of major company shareholders, including SG Fleet Management and Willoughby Capital, have already confirmed their intention to take up their rights under the entitlement issue, which are worth over $1.5 million.

While the schedule for the rights issue is subject to potential changes, the company expects the offer period to close around May 7, with shares to be issued around May 14 2021.

The funds from the rights issue will primarily be used to accelerate the growth in supplying additional cars to the company’s fleet of vehicles for subscription. This will give Carly Holdings much greater control over the availability and deployment of its vehicles, allowing the company to address increased demand brought about by the COVID-19 pandemic.

Some funds may also go towards generating further demand and increasing working capital. 

Carly Holdings is down 10 per cent, trading at nine cents per share at market close.

CL8 by the numbers
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