Join our daily newsletter At The Bell to receive exclusive market insights
- Graphite production hopeful EcoGraf (EGR) is set to raise $54.6 million via an institutional placement
- Roughly 91 million new fully paid ordinary shares will be issued under the placement at 60 cents each
- That price represents a 2.2 per cent discount to the 10-day volume-weighted average price of EGR shares on February 9
- The materials stock received firm commitments to raise the capital from cornerstone institutional investors across North America, Germany and Australia
- EcoGraf will use the cash injection to develop its WA battery anode facility, advance recycling programs, finalise debt financing for its Tanzanian plant, and for general working capital
- EGR shares are down 4.5 per cent to 95.5 cents following the announcement
Graphite production hopeful EcoGraf (EGR) is set to raise $54.6 million via an institutional placement.
The materials stock received firm commitments to raise the capital from cornerstone institutional investors across North America, Germany and Australia.
In particular, a New York-based Environmental, Social and Governance fund, a German-based global fund manager and a major Australian fund manager chipped in during the fundraise.
Roughly 91 million new fully paid ordinary shares will be issued under the placement at 60 cents each.
Specifically, that price represents a 2.2 per cent discount to the 10-day volume-weighted average price (VWAP) of EGR shares on February 9, 2021. It also marks a 21.6 per cent premium to the 15-day VWAP on the same date.
Canaccord Genuity acted as lead manager and bookrunner to the placement.
EcoGraf will use the cash injection to construct and bring the first stage of its WA-based battery anode material purification facility into operation.
The fresh funding will also help the materials business advance its recycling programs, finalise debt financing agreements for its Tanzanian Epanko graphite mine and for product development and general working capital.
While the ASX-lister noted a retail-centric share purchase plan wasn’t feasible at this time, it acknowledged the loyalty of its retail base and the support of long-term holders.
EcoGraf’s latest capital raise is expected to settle on February 18.
EGR shares are down 4.5 per cent to 95.5 cents at 11:58 am AEDT.
