- Cochlear (COH) has opened its share purchase plan (SPP) and is hoping to raise $50 million to help offset the negative impact of COVID-19
- Eligible shareholders will be able to apply for up to $30,000 worth of new shares
- This share purchase plan is part of a much larger $850 million placement
- The money raised will be used to support the company during this uncertain time and enhance its balance sheet
- Cochlear is up 6.47 per cent on the market and shares are trading for $199.57 each
Cochlear (COH) has opened its share purchase plan (SPP) and is hoping to raise $50 million to help offset the negative impact of COVID-19.
Eligible shareholders are able to apply for up to $30,000 worth of shares and will not incur any transaction costs.
While the price is uncertain, shares will be less than $140, which represents a two per cent discount to the volume-weighted average price (VWAP) from the five days up to, and including April 23.
This $50 million SPP comes a week after Cochlear announced it will raise $850 million to cushion the negative impact from COVID-19.
The remaining $800 million was raised through the placement of 5.7 million new company shares at a price of $140 each.
These shares settled on March 30 and were issued to shareholders who could begin trading on the ASX on March 31.
Money raised from both the placement and share purchase plan will be used to support the company during COVID-19, enhance its balance sheet, and reinforce its position as the leader in hearing solutions.
“To ensure we emerge from this global health pandemic in an even stronger competitive position than before, we are strengthening the balance sheet by raising equity,” Chairman Rick Holliday-Smith said in a previous announcement.
Shares from the share purchase plan will be issued on April 30, and shareholders can begin trading with them on May 1.
Cochlear is up 6.47 per cent on the market and shares are trading for $199.57 each at 2:34 pm AEDT.