Join our daily newsletter At The Bell to receive exclusive market insights
- Kalium Lakes (KLL) has successfully raised $48.8 million from a placement and institutional entitlement offer
- The company now aims to raise a further $12.2 million from the retail portion of the entitlement offer, with all funds raised helping to fund the Beyondie sulphate of potash project through to production
- The placement and institutional offer received strong support from both existing and new investors
- Once the retail component is finished, the Beyondie sulphate of potash project will essentially be fully funded, giving investors an estimated 30-year mine life of high-margin, low operating cost operations
- The cheap offer price is at least some consolation to shareholders who’ve suffered from the recapitalisation after massive cost overruns
- Kalium Lakes is still suspended from trade, with shares last priced at 49 cents each on February 24
Kalium Lakes (KLL) has successfully raised $48.8 million from a placement and institutional entitlement offer.
The company now aims to raise a further $12.2 million from the retail portion of the entitlement offer, with all funds raised helping to fund the Beyondie sulphate of potash project through to production.
The placement and institutional offer received strong support from both existing and new investors.
The offer price of 15 cents per share was a gift, representing a 69 per cent discount to KLL’s last closing price prior to the offer.
Once the retail component is finished, the Beyondie sulphate of potash project will essentially be fully funded, giving investors an estimated 30-year mine life of high-margin, low operating cost operations.
The retail offer will be open tomorrow on a five-for-seven non‐renounceable pro-rata basis.
This means shareholders will be able to buy five new shares for every seven shares already held; new shares can’t be traded unless existing shares are traded first, and shares will be distributed proportionally to shareholders based on their total holdings and demand for the offer.
Shareholders may have been disappointed by the massive capital cost overruns which resulted in the company’s suspension from trade, pending the recapitalisation review of the project.
Now at least it appears the project is fully funded for production.
While one might expect the share price to substantially correct itself after the massive recapitalisation, being able to get in so cheap will at least allow those who’ve been on board for a while to get something back eventually, despite management mistakes that were made along the way.
Kalium Lakes is still suspended from trade, with shares last priced at 49 cents each on February 24.
