- Property developer Ultima United (UUL) has unveiled plans to raise up to $2.93 million through a share placement
- Through the placement, the company intends to allot up to 7.33 million shares at a fixed price of 40 cents per share
- Executive Chairman and Managing Director, Jonathan Cheng, has also committed to subscribe for an additional $583,582 in shares
- The company will use the combined funds to develop its Bentley National Disability Insurance Scheme project
- Ultima United closed in the grey for 36.5 cents per share
Property developer Ultima United (UUL) has unveiled plans to raise up to $2.93 million through a share placement.
Through the proposed placement, the company will allot up to 7,331,437 shares, at a fixed price of $0.40 per share. This price for placement represents a premium of approximately 11 per cent on Ultima’s current trading price.
Up to 25 per cent of the issue will be offered to eligible shareholders who are professional or sophisticated investors. As of October 2, there are no firm commitments from any potential subscribers for the issue.
While the company expects to complete the placement by October 30, 2020, this is dependent on certain circumstances. Due to the suspension of trading in Ultima’s shares in the last year, the issue is subject to obtaining cleansing notice relief from the ASIC.
The company has already lodged an application to the ASIC, but has yet to receive it. If it is not obtained by October 30, 2020, Ultima must release a cleansing prospectus, to ensure secondary trading of placement shares on the ASX.
In addition to the proposed placement of up to $2.93 million, Executive Chairman and Managing Director, Jonathan Cheng, has committed to subscribe for a separate amount. Jonathan Cheng intends to subscribe for 1,458,955 shares at $0.40, for an aggregate $583,582.
The issue of these extra shares will be subject to the company obtaining shareholder approval at the Annual General Meeting, which is set for late November.
If the proposed share placement is fully subscribed to, and Jonathan receives shareholder approval, Ultima will rake in approximately $3,516,156 through the two issues.
The company will use up to $2.1 million of the combined funds to develop its Bentley National Disability Insurance Scheme (NDIS) project. Ultima plans to complete the project by the fourth quarter of 2021.
Up to $1 million of the funds will go towards pursuing opportunities in both Australian and Asian property markets, as well as general working capital purposes.
Ultima United closed in the grey for 36.5 cents per share.