Kalina Power Limited - Entitlement Offer and Placement Announcement - 27 September 2024
KALINA POWER LIMITED (KPO) Share Update September 2024 Thursday 26th
Kalina Power Announces Entitlement Offer and Placement
Kalina Power Limited (ASX: KPO) has announced a new pro rata non-renounceable entitlement offer and a placement to sophisticated, professional, and institutional investors to raise approximately A$2.53 million.
Instant Summary:
- Entitlement Offer to raise approximately A$1.03 million.
- Placement to raise approximately A$1.5 million.
- New shares priced at $0.01 per share.
- Participants receive free attaching options.
- Offer supported by management and large shareholders.
Entitlement Offer Details
The Entitlement Offer will involve the issue of approximately 103 million shares to raise approximately A$1.03 million before expenses. The offer will be on the basis of one new share for every twenty-four shares currently held by eligible shareholders. New shares are priced at $0.01 per share, allowing existing shareholders to participate in the company's capital raising. Participants in the Entitlement Offer will also receive one free attaching option for every two new shares issued, exercisable at 2 cents per share and expiring 18 months from the date of issue.
Eligible shareholders are those with an address in Australia or New Zealand, or as elected at the company's discretion, holding shares as of the Record Date. They will also have the right to apply for additional shares in excess of their entitlement under a shortfall offer. The Entitlement Offer is strongly supported by management and existing large shareholders.
Placement Details
In addition to the Entitlement Offer, Kalina Power is conducting a Placement to raise approximately A$1.5 million before expenses. The Placement will involve the issue of approximately 150 million shares at $0.01 per share. Participants in the Placement will receive one free attaching option for every two new shares issued, exercisable at 2 cents per share and expiring 18 months from the date of issue. The Placement will be conducted using the company's placement capacity under ASX Listing Rule 7.1.
BW Equities Pty Ltd is acting as the lead manager and underwriter for the Entitlement Offer. The material terms of the underwriting agreement are detailed in the prospectus, which is expected to be lodged on Monday, 30 September 2024.
Indicative Timetable
The indicative timetable for the Entitlement Offer and Placement is as follows:
- Announcement of Entitlement Offer and Placement: 27 September 2024
- Lodgement Date of Prospectus: 30 September 2024
- 'Ex' date: 2 October 2024
- Record Date: 3 October 2024
- Settlement of Placement: 4 October 2024
- Issue of Placement securities: 7 October 2024
- Despatch of Offer Booklet and Open of Entitlement Offer: 8 October 2024
- Last day to extend offer closing date: 24 October 2024
- Close of Entitlement Offer: 29 October 2024
- Offer securities quoted on a deferred settlement basis: 30 October 2024
- Announcement of results and Lodgement of Appendix 2A: 5 November 2024
- Allotment Date: 5 November 2024
- Offer securities commence trading on a regular basis: 6 November 2024
This timetable is indicative and subject to change at the company's discretion.
The capital raised through the Entitlement Offer and Placement will provide Kalina Power with additional funds to support its operations and growth initiatives. The issuance of new shares and options at a low price may dilute the value of existing shares, but the strong support from management and large shareholders is a positive sign. The market reaction will likely depend on how effectively the company utilizes the raised capital to drive future growth.
Investor Reaction:
Analysts are likely to view the capital raising as a necessary step for Kalina Power to support its growth plans. The strong support from management and large shareholders may instill confidence in the company's future prospects. However, some investors may be concerned about the potential dilution of their existing shares.
Conclusion:
Investors should closely monitor the progress of the Entitlement Offer and Placement, as well as the company's plans for utilizing the raised capital. The support from management and large shareholders suggests a positive outlook, but investors should remain vigilant about potential dilution and market reactions.