Cooper Metals Limited: Entitlement Issue of Loyalty Options
CPM (CPM) Share Update July 2024 Thursday 11th
Cooper Metals Announces Entitlement Issue of Loyalty Options
Cooper Metals Limited (ASX: CPM) has announced a pro-rata non-renounceable entitlement issue of options to eligible shareholders, aimed at recognizing their ongoing support and loyalty. This initiative offers shareholders the opportunity to acquire Loyalty Options at a nominal price.
Instant Summary:
- Pro-rata non-renounceable entitlement issue of options.
- One Loyalty Option for every ten fully paid ordinary shares.
- Issue price of $0.003 per Loyalty Option.
- Options exercisable at $0.25, expiring on 24 November 2026.
- Total of 7,835,565 Loyalty Options to be issued.
- Funds raised will cover the costs of the Loyalty Offer.
Details of the Loyalty Offer
Cooper Metals Limited (ASX: CPM) has announced a pro-rata non-renounceable entitlement issue of options, termed Loyalty Options, to its eligible shareholders. The offer is structured to provide one Loyalty Option for every ten fully paid ordinary shares held by shareholders as of 5:00 pm (WST) on 22 July 2024 (Record Date). Each Loyalty Option is priced at $0.003.
The Loyalty Options will be exercisable at $0.25 and will expire on 24 November 2026. These options are of the same class as the currently issued 'CPMO' options. The company plans to apply for the quotation of these Loyalty Options on the ASX, subject to compliance with ASX Listing Rules.
Purpose and Financial Details
The primary purpose of the Loyalty Offer is to acknowledge the support and loyalty of Cooper Metals' shareholders. The offer is available to shareholders listed on the company’s register as of the Record Date, provided their registered address is in Australia or New Zealand.
Based on the current number of shares on issue, a total of 7,835,565 Loyalty Options will be issued, potentially raising approximately $23,507 before costs. The funds raised will be used to cover the costs associated with the Loyalty Offer.
Management and Shortfall
Prenzler Group Pty Ltd will act as the Lead Manager for the Loyalty Offer and will receive a fee of 1,000,000 options under the same terms. Any entitlements not taken up will form the shortfall, which the Board, in consultation with the Lead Manager, may place at their discretion within three months following the closing date of the offer.
Timetable and Prospectus
The prospectus detailing the Loyalty Offer will be lodged with the ASX on 16 July 2024 and sent to eligible shareholders on 25 July 2024. The key dates for the Loyalty Offer are as follows:
- Announcement of Loyalty Offer: 11 July 2024
- Lodgement of Prospectus: 16 July 2024
- Record Date: 22 July 2024
- Prospectus despatched: 25 July 2024
- Opening date: 25 July 2024
- Closing date: 5 August 2024
- Results announcement: 12 August 2024
- Issue of Loyalty Options: 12 August 2024
The announcement of the Loyalty Offer is likely to have a positive impact on Cooper Metals' stock as it demonstrates the company's commitment to rewarding its loyal shareholders. The issuance of options provides an opportunity for shareholders to potentially benefit from future stock price appreciation. However, the relatively small amount of funds raised indicates that the immediate financial impact on the company will be minimal.
Investor Reaction:
Initial reactions from investors and analysts have been positive, with many viewing the Loyalty Offer as a strategic move to enhance shareholder value. Some investors have expressed optimism about the potential for future stock price increases, given the exercisable price of the options.
Conclusion:
Cooper Metals' Loyalty Offer is a strategic initiative to reward its shareholders and potentially enhance future shareholder value. Investors should consider participating in the offer and monitor the company's progress closely. This move reinforces Cooper Metals' commitment to its shareholders and its confidence in future growth prospects.