- Offer on basis of 1 New Share for every 12.9 Shares held at an issue price of $0.01 (1.0 cent)
- Chairman Asimwe Kabunga to underwrite up to $600,000 of any shortfall from the Rights Issue
- Funds raised will be used to progress approvals for Dar es Salaam (DSE) and the Stock Exchange of Mauritius (SEM) listed debt note issues and for general corporate and working capital
Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (Volt or the Company) is pleased to advise that it will be undertaking a 1 for 12.9 non-renounceable Rights Issue (Rights Issue) of ordinary shares to raise up to $1.250 million (before costs).
Under the Rights Issue, eligible Shareholders will be entitled to apply for 1 new ordinary fully paid share (New Share) for every 12.9 ordinary shares held as at 5.00pm (EDST) on Friday 22 November 2019, being the record date for the Rights Issue. The offer price of $0.01 (1.0 cent) represents a 23% discount to the last closing price of the Company’s shares on ASX on 18 November 2019, and a 24.5% discount to 5-day VWAP price up until that date.
Volt’s Chairman Mr Asimwe Kabunga, via Kabunga Holdings Pty Ltd, has agreed to underwrite up to $600,000 of any shortfall from the Rights Issue.
New Shares not taken up by eligible Shareholders will become available under a Shortfall facility (Oversubscriptions Facility). Eligible Shareholders who subscribe for their entitlement in full may apply for additional New Shares under the Oversubscriptions Facility.
The Directors of the Company that are eligible intend to participate in the Rights Issue.
Funds raised from the Rights Issue will be used to advance the approvals process of the respective Dar es Salaam (DSE) and the Stock Exchange of Mauritius (SEM) listed note issues (see ASX release dated 24 October 2019), to meet existing payable obligations and for general corporate and working capital purposes.
In addition, the Company will be reviewing its Australian based structure and activities to reduce expenditure, particularly whilst the Stage 1 Bunyu Project development funding activities are in progress.
To assist the Company to meet its working capital requirements whilst the Rights Issue is completed, the Company has secured $100,000 in short term working capital funding from the Company’s Chairman and CEO ($50,000 from each of Mr Kabunga and Mr Matthews) on an unsecured, arm’s length commercial terms basis, with such moneys being repayable on or before 31 December 2019.
Further details on the Rights Issue (including the Oversubscriptions Facility and how Eligible Shareholders can apply for their entitlement) will be provided in the Entitlement Offer Booklet and sent to Eligible Shareholders in accordance with the dates provided in the below Indicative Timetable.
Indicative Rights Issue Timetable
| Announcement of the Rights Issue | 19 November 2019 |
| Record Date to determine Rights | 5.00pm (EDST) on Friday 22 November 2019 |
| Offer Document and Entitlement and Acceptance Form dispatched Opening date of the Rights Issue | Tuesday 26 November 2019 |
| Closing Date – last date for lodgement of Entitlement and Acceptance Forms and Application Money | 5.00pm (EDST) on Wednesday 11 December 2019 |
| Trading of New Shares commences on a deferred settlement basis | Thursday 12 December 2019 |
| ASX notified of shortfall | Thursday 12 December 2019 |
| Allotment of New Shares | Friday 13 December 2019 |
| Normal trading of New Shares expected to commence on ASX | Monday 16 December 2019 |
| Despatch of holding statements for the New Shares | Monday 16 December 2019 |
Subject to the Corporations Act and Listing Rules, the Company reserves the right to vary the timetable without prior notice, including by extending the Closing Date, closing the Rights Issue early, accepting late Applications or by withdrawing the Rights Issue. The Company also reserves the right not to proceed with the whole or part of the Rights Issue at any time prior to allotment. In that event, Application Money will be returned without interest
For and on behalf of Volt Resources Limited
Trevor Matthews
Chief Executive Officer
FOR PERSONAL USE ONLY
For further information please contact:
Trevor Matthews – Chief Executive Officer
Tel: +61 8 9486 7788