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- Talga Group (TLG) has successfully completed an institutional placement to raise $25 million
- A share purchase plan open to all eligible shareholders is expected to raise an additional $10 million
- Proceeds will be used to fund the electric vehicle anode pilot plant as part of Talga’s development in Sweden
- The institutional placement and share purchase plan will both be set at $1.45 per share
- TLG shares are down 12.46 per cent on Wednesday, trading at $1.54
Perth-based battery anode company Talga Group (TLG) has successfully raised $25 million by way of a placement to sophisticated, professional and institutional investors.
The placement, underwritten and managed by Morgan Stanley Australia, will result in 17,241,380 fully paid ordinary shares issued at $1.45 each. The placement price represents a 17.85 per cent discount on Tuesdays closing price of $1.77
$22 million from the placement will go towards building the electric vehicle anode pilot plant in Sweden, with the remaining $3 million set aside for general working capital and transaction costs. The Swedish plant is expected to be operational by the first quarter of 2022 and will run on 100 per cent renewable energy, producing ultra-low emission coated anode for greener lithium-ion batteries.
In addition to the institutional placement, the company is looking to raise a further $10 million via a share purchase plan (SPP) at the same price of $1.45 each. Under that offer, eligible shareholders will have the opportunity to purchase up to $30,000 worth of shares.
The SPP is expected to open December 21, 2020, and conclude January 15, 2021. The terms and conditions of the plan will be contained in offer documentation expected to be available on December 21.
TLG share are trading down 12.46 per cent at $1.54 at 1:04 pm AEDT.
