AD1 Holdings Expands Share Placement and Completes Strategic Acquisition
AD1 (AD1) Share Update August 2024 Friday 9th
AD1 Holdings Announces Increased Share Placement and Acquisition Completion
AD1 Holdings Limited (ASX: AD1) has announced an increase in its share placement to $2,600,000 and the successful acquisition of Oliver Grace Pty Ltd.
Instant Summary:
- Increased share placement to $2,600,000 due to strong demand.
- Substantial investment from a US high-net-worth individual.
- Additional 195,000,000 shares to be issued in Tranche 2, subject to shareholder approval.
- Directors to participate in the placement with $650,000 investment.
- Successful completion of Oliver Grace Pty Ltd acquisition.
Increased Share Placement
AD1 Holdings Limited (ASX: AD1) has announced an increase in its share placement, bringing the total amount raised to $2,600,000. This follows the initial placement of 320,000,000 fully paid ordinary shares to raise $1,600,000. The increase is due to strong demand from both existing and new institutional investors, including a substantial investment from a US high-net-worth individual, which is seen as a strong endorsement of the company's US growth strategy.
Of the additional $1,000,000 raised, 89,000,000 shares will be issued using the company's placement capacity in accordance with ASX Listing Rule 7.1. The remaining 106,000,000 shares will form part of Tranche 2 of the placement and will be issued subject to shareholder approval at an extraordinary general meeting expected to be held in September 2024.
Director Participation
AD1 directors have agreed to participate in the placement, subject to obtaining shareholder approval under ASX Listing Rule 10.11. The proposed director participation has increased to $650,000, which will see 130,000,000 Placement Shares issued to non-executive directors Nicholas Smedley, Michael Norster, and Angus Washington.
Indicative Timetable
The updated indicative timetable for the placement is as follows:
- Allotment and commencement of trading of Tranche 1 Placement Shares: Friday, 9 August 2024
- Company EGM for Tranche 2 Placement approval: September 2024 (TBC)
- Conditional settlement of Tranche 2 Placement Shares: September 2024
- Allotment and commencement of trading of Tranche 2 Placement Shares: September 2024
AD1 reserves the right to vary any or all of the dates and times of the placement without prior notice, subject to the Corporations Act, ASX Listing Rules, and other applicable laws.
Completion of Oliver Grace Acquisition
AD1 Holdings has successfully completed its acquisition of Oliver Grace Pty Ltd. The company believes that significant synergistic cost savings and revenue growth opportunities will arise from bringing both businesses together. The AD1 directors are delighted to welcome founders Bonnie Borland and Nicholas Lehrain to the AD1 group.
Read the full Oliver Grace acquisition announcement (29 July 2024) on the company's website.
The increase in share placement and the substantial investment from a US high-net-worth individual are positive indicators of investor confidence in AD1's growth strategy. The successful acquisition of Oliver Grace Pty Ltd is expected to bring synergistic benefits and enhance revenue growth opportunities. These developments are likely to have a positive impact on AD1's stock price as investors react to the increased capital and strategic expansion.
Investor Reaction:
Analysts are likely to view the increased share placement and substantial investment as strong endorsements of AD1's growth strategy. The successful acquisition of Oliver Grace Pty Ltd is expected to be seen positively, with potential for significant cost savings and revenue growth. Overall, investor sentiment is expected to be optimistic, with a focus on the company's future growth prospects.
Conclusion:
Investors should monitor the upcoming extraordinary general meeting for shareholder approval of Tranche 2 of the share placement. The successful completion of the Oliver Grace acquisition marks a significant milestone for AD1 Holdings, and the increased capital from the share placement will support the company's growth strategy. Stay informed on AD1 Holdings' developments and consider the potential long-term impacts on your investment portfolio.