- Syrah Resources (SYR) completes a placement and the institutional component of the entitlement offer, raising a combined $192 million
- Roughly 129 million new shares were issued under both components, with shares priced at $1.65 each
- According to CEO and Managing Director Shaun Verner, the money will be used to progress construction of Syrah’s active anode material facility
- Syrah will now undertake the retail component of the entitlement offer and is expected to raise around $58 million
- Shares in Syrah are down 8.92 per cent on the market and are trading at $1.48
Syrah Resources (SYR) has completed a placement and the institutional component of the entitlement offer, raising a combined $192 million.
Under the placement, approximately 84 million shares were issued to eligible institutional shareholders at $1.48.
This price represents a 10.3 per cent discount to Syrah’s closing price of $1.65 on February 4 and a 7.9 per cent discount to the theoretical ex-rights price of $1.61.
Under the entitlement offer, roughly 45 million new shares were issued, priced the same as the placement of $1.65.
Approximately 76 per cent of the entitlements were taken up, with those not taken up fully allocated to existing shareholders and new investors.
Shares under both the placement and institutional entitlement offer are expected to settle on February 16 with shares to be allocated on February 17.
“We are delighted by the strong support received from existing shareholders, and we are pleased to welcome new investors to Syrah’s register,” CEO and Managing Director Shaun Verner said.
“The company is in a strong financial position to progress construction of the 11.25ktpa active anode material facility at Vidalia.”
Syrah is now set to undertake the retail component of the entitlement offer and is expected to raise around $58 million.
Eligible retail shareholders will be able to apply for up to one new share for every 5.9 held as of February 9.
Those who take up their full entitlement may also apply for additional new shares in excess of the entitlement at the offer price of $1.65.
The retail entitlement offer will open on February 14 and close on February 28.
Shares in Syrah were down 9.23 per cent on the market and were trading at $1.48 at 12:25 pm AEDT.