Legacy Iron Ore Successfully Completes Entitlement Offer
LCY (LCY) Share Update November 2024 Wednesday 20th
Legacy Iron Ore Completes Entitlement Offer Raising $22.53 Million
Legacy Iron Ore Limited (ASX: LCY) has successfully completed its Accelerated Non-Renounceable Entitlement Offer (ANREO), raising a total of $22.53 million before costs.
Instant Summary:
- Retail component raised $379,859 before costs.
- Institutional component raised $22.15 million before costs.
- Total funds raised: $22.53 million before costs.
- Shortfall of 155,377,730 shares available for placement.
- Legacy Iron shares expected to resume trading on 22 November 2024.
Entitlement Offer Details
Legacy Iron Ore Limited has announced the successful completion of its Accelerated Non-Renounceable Entitlement Offer (ANREO), which was initially announced on 29 October 2024. The offer was structured to provide existing shareholders with the opportunity to purchase additional shares at a discounted rate.
The retail component of the offer closed on 19 November 2024, raising $379,859 before costs. Under this component, eligible shareholders were offered 2 fully paid ordinary shares for every 7 shares they held, at an issue price of $0.011 per share.
Institutional Component
The institutional component of the offer was completed earlier, raising $22.15 million before costs. This part of the offer was primarily taken up by Legacy Iron's major shareholder, NMDC. The combined total from both components of the offer amounts to $22.53 million before costs.
Shortfall and Future Plans
The company has noted a shortfall of 155,377,730 shares from the retail component, which may be placed within three months. These shares are available to eligible shareholders wishing to increase their holdings and to other parties identified by the company's directors.
Legacy Iron has stated that these new shares will be allotted and issued by 21 November 2024, and they will rank equally with existing shares. The company's securities, currently suspended from trading, are expected to be reinstated on 22 November 2024.
The successful completion of the entitlement offer is a positive step for Legacy Iron Ore, providing the company with significant capital to further its exploration and development projects. The reinstatement of trading is likely to attract investor attention, potentially stabilizing or boosting the stock price.
Investor Reaction:
Analysts are likely to view the successful capital raising as a positive development, enhancing Legacy Iron's financial position. However, the suspension of trading and the shortfall in the retail offer may cause some concern among investors.
Conclusion:
Investors should keep an eye on the placement of the shortfall shares and the company's next steps in utilizing the raised funds. Legacy Iron's strategy in deploying this capital will be crucial in driving future growth and investor confidence.