- Marenica Energy (MEY) has entered another trading halt today as it prepares to launch a top-up placement as part of a recent capital raising plan
- The cap raise was initially announced last month, with Marenica seeking $3.75 million through a share purchase plan
- New shares under the purchase plan were priced at 8.8 cents a pop, which represents an 11 per cent discount to Marenica's last closing price at the time
- Importantly, the company said it would be potentially launching a "top-up" share placement at the same price depending on the outcome of the purchase plan
- As it turns out, Marenica was only able to pull in just under $2.8 million through the purchase plan
- Shares in Marenica last traded for 9.1 cents each yesterday afternoon, with the company's trading halt set to lift on Tuesday, November 24
Marenica Energy (MEY) has entered another trading halt today as it prepares to launch a top-up placement as part of a recent capital raising plan.
The initial capital raise was announced on October 19, though at the time it was not certain how much Marenica planned to raise and what it would use the fresh funding for.
Marenica later announced it was tapping investors for $3.75 million through a share purchase plan, with new shares priced at 8.8 cents a pop — an 11 per cent discount to the company's last closing price at the time.
The purchase plan was partially underwritten to $2 million by Viriathus Capital and Cumulus Wealth, who acted at lead managers to the raise.
Importantly, the conditions of the capital raise meant Marenica could take on a separate 'top-up' share placement to raise $2.6 million if shareholders didn't participate strongly enough in the purchase plan. New shares under the top-up offer would be placed at the same price as the purchase plan.
As it turns out, Marenica was only able to pull in just under $2.8 million from the purchase plan. Thus, it's likely today's trading halt is in preparation for the top-up placement.
Marenica said the new funds will go towards exploration and development work across its range of exploration assets.
This includes work at its Namibian uranium projects and its recently-bought uranium projects in Australia. The funds will also support the ongoing development of Marenica's patented U-pgrade uranium beneficiation process.
Taking a look at the company's most recent financials, Marenica had around $676,000 in the bank at the end of September, after going cashflow-negative during the quarter by $382,000. At this level of spending, the company had less than two quarters left of funds in the bank before the cap raise was announced.
Shares in Marenica last traded for 9.1 cents each yesterday afternoon. The trading halt is slated to be lifted on Tuesday, November 24.