Cullen Resources Limited Announces Pro-Rata Non-Renounceable Rights Issue
CUL (CUL) Share Update July 2024 Sunday 21st
Cullen Resources Announces Pro-Rata Non-Renounceable Rights Issue
Cullen Resources Limited (ASX: CUL) has announced a pro-rata non-renounceable rights issue, offering new shares to eligible shareholders at an issue price of $0.006 per share. This rights issue aims to raise up to $1,140,346 before costs.
Instant Summary:
- 1-for-3 pro-rata non-renounceable rights issue.
- Issue price of $0.006 per new share.
- Offer closes at 5:00 PM (AEST) on 16 August 2024.
- Eligible shareholders can apply for additional shortfall shares.
- Funds to be used for exploration and working capital.
The Offer
Cullen Resources Limited is offering its eligible shareholders the opportunity to subscribe for new shares under a 1-for-3 pro-rata non-renounceable rights issue. This means that for every three shares held, shareholders are entitled to subscribe for one new share at an issue price of $0.006 per share. Eligible shareholders may also apply for additional shortfall shares if they wish to acquire more than their entitlement.
The offer is set to close at 5:00 PM (AEST) on 16 August 2024. The company has outlined a detailed timetable for the rights issue, starting with the announcement of the offer on 22 July 2024 and concluding with the quotation of new shares on 26 August 2024.
Timetable
The key dates for the rights issue are as follows:
- Announcement of the offer: 22 July 2024
- Existing shares quoted on 'ex' basis: 24 July 2024
- Record date to determine entitlements: 25 July 2024
- Offer document and entitlement form dispatched: 30 July 2024
- Last day to extend the offer: 13 August 2024
- Closing date: 16 August 2024
- New shares quoted on a deferred settlement basis: 19 August 2024
- Announcement of results: 23 August 2024
- Allotment of new shares: 23 August 2024
- Dispatch of holding statements: 23 August 2024
- Quotation of new shares: 26 August 2024
Important Information
The offer document is not a prospectus and has not been lodged with ASIC. It is important for eligible shareholders to read and understand the information regarding the company, which is publicly available on the ASX website under stock code CUL, before deciding whether to accept the offer. The new shares offered are considered speculative investments.
Use of Funds
The funds raised from the rights issue will be primarily used for advancing exploration projects, including gold, base metals, and Ni-Cu-PGE mineralization at the Wongan Hills Project, gold and lithium at the Barlee Project, REE, lithium, and/or gold at the Bromus South Project, and targeting at the Cue and Yornup Projects. Additionally, funds will be allocated for project generation and working capital purposes.
The proposed use of funds is as follows:
- Wongan Hills Project: $250,000
- Barlee Project: $150,000
- Bromus South Project: $100,000
- Cue Project: $80,000
- Working Capital: $525,346
- Cost of Issue: $35,000
Participation and Allocation
Eligible shareholders can participate in the rights issue by completing the entitlement and acceptance form and making the required payment. The offer is non-renounceable, meaning that entitlements cannot be sold, traded, or transferred. If there is any shortfall, it will be allocated to eligible shareholders who have applied for additional shortfall shares. The directors reserve the right to place any unissued shortfall shares within three months after the close of the offer.
Risks
Investing in new shares involves risks, including exploration and development risks, joint venture risks, future capital requirements, and title risks. Shareholders should consider these risks and consult their professional advisers before deciding to invest.
The rights issue is expected to provide Cullen Resources with the necessary funds to advance its exploration projects and support its working capital needs. However, the speculative nature of the investment and the potential dilution of existing shareholders' interests may impact investor sentiment. The success of the rights issue and the company's ability to achieve its exploration objectives will be crucial in maintaining investor confidence.
Investor Reaction:
Analysts have noted that the rights issue offers an opportunity for existing shareholders to increase their holdings at a discounted price. However, the speculative nature of the investment and the potential dilution of existing shareholders' interests may lead to mixed reactions from investors.
Conclusion:
Investors should carefully consider the terms of the rights issue and the potential risks before deciding to participate. Monitoring the company's progress in its exploration projects and its strategic response to the funds raised will be important in assessing the long-term impact on their portfolios.