Kalina Power Limited - Fully Underwritten Rights Issue Announcement
KALINA POWER LIMITED (KPO) Share Update September 2024 Monday 30th
Kalina Power Announces Fully Underwritten Rights Issue to Raise $1.03 Million
Kalina Power Limited (ASX: KPO) has announced a fully underwritten non-renounceable pro-rata rights issue aimed at raising up to $1.03 million before costs. This move is part of the company’s strategy to secure working capital and advance its projects.
Instant Summary:
- Fully underwritten non-renounceable pro-rata rights issue.
- Issue price of 1 cent per share.
- One free attaching option for every two new shares issued.
- Options exercisable at 2 cents, expiring 18 months from the date of issue.
- Offer closes at 5:00 pm Sydney time on 30 October 2024.
Offer Details
Kalina Power Limited is offering up to approximately 103,599,750 new fully paid shares to eligible shareholders at a price of 1 cent per share. The rights issue is on the basis of 1 new share for every 24 shares held. For every two new shares issued, shareholders will receive one free attaching option to acquire a further share, exercisable at 2 cents and expiring 18 months from the date of issue.
The entitlement offer is fully underwritten by BW Equities Pty Ltd, ensuring that the company will raise the targeted $1.03 million before costs. The funds will be used for working capital and to advance the company's strategic plans.
Additional Offers
In addition to the rights issue, Kalina Power will offer 1 free attaching option for every 2 shares subscribed for and issued under the placement to professional, sophisticated, and institutional investors. Furthermore, 20 million options will be issued to BW Equities Pty Ltd as part consideration for capital raising services provided to the company.
Important Dates
The offer closes at 5:00 pm Sydney time on 30 October 2024. Valid acceptances must be received before this date. Shareholders are encouraged to read the prospectus in its entirety and consult their financial advisers if they have any questions.
The rights issue is expected to provide Kalina Power with the necessary capital to fund its operations and strategic projects. The fully underwritten nature of the offer provides certainty that the company will raise the targeted amount, which is positive for its financial stability. However, the issuance of new shares and options may lead to dilution of existing shareholders' equity.
Investor Reaction:
Analysts are likely to view the fully underwritten rights issue as a positive step towards securing the company's financial future. The offer's structure, including the attaching options, may attract investors looking for potential upside. However, the dilution effect may be a concern for some existing shareholders.
Conclusion:
Investors should consider participating in the rights issue to avoid dilution of their holdings. The funds raised will support Kalina Power's ongoing projects and operational needs. Shareholders are advised to review the prospectus and consult with their financial advisers to make an informed decision.