Manhattan Corporation's $1.5 Million Entitlement Offer to Boost Exploration Projects
MANHATTAN CORPORATION LIMITED (MHC) Share Update July 2024 Monday 29th
Manhattan Corporation Announces $1.5 Million Entitlement Offer
Manhattan Corporation Limited (ASX: MHC) has unveiled a new non-renounceable entitlement offer aimed at raising up to $1.5 million to support its ongoing exploration projects and other corporate needs.
Instant Summary:
- 1 for 2 non-renounceable entitlement offer at $0.001 per share.
- Aims to raise up to $1.5 million before costs.
- Funds to be used for drilling, geophysics, soils, and tenement administration.
- Offer not underwritten.
- Conditional placement to directors for up to $200,000.
Overview of the Entitlement Offer
Manhattan Corporation Limited has announced a 1 for 2 non-renounceable pro-rata entitlement offer of new fully paid ordinary shares at an offer price of $0.001 per share. This initiative aims to raise approximately $1.5 million before costs.
The funds will be allocated towards drilling, geophysics, soils, tenement administration, and working capital. The entitlement offer is not underwritten, and the board reserves the right to alter the allocation of funds as needed.
Eligibility and Allocation
Only shareholders on the company's register as of 5:00pm (AWST) on 2 August 2024, with a registered address in Australia, New Zealand, or other approved jurisdictions, will be eligible to participate. The new shares will rank equally with existing shares from the date of issue.
Entitlements are non-renounceable and cannot be traded or transferred. Shareholders who do not take up their entitlements will not receive any value for them. The offer is not underwritten, and any shortfall shares will be allocated at the directors' discretion within three months of the offer's close.
Conditional Placement and Use of Funds
Certain directors intend to subscribe for up to 200 million new shares, raising up to $200,000, subject to shareholder approval. The funds raised will be used primarily for drilling ($0.6 million), geophysics and soils ($0.3 million), tenement administration ($0.1 million), and working capital and offer costs ($0.5 million).
Indicative Timetable
The offer booklet will be dispatched to eligible shareholders on 7 August 2024, with the offer closing on 21 August 2024. New shares are expected to commence trading on 29 August 2024. A shareholder meeting to approve the conditional placement and other matters will be held in late September 2024.
This entitlement offer aims to provide Manhattan Corporation with the necessary funds to advance its exploration projects. While the offer price is low, the successful raising of $1.5 million could significantly boost the company's operational capabilities. However, the non-underwritten nature of the offer adds a layer of uncertainty.
Investor Reaction:
Analysts may have mixed reactions to this announcement. While the fundraising effort demonstrates the company's commitment to its projects, the low offer price and non-renounceable nature of the entitlements might raise concerns about dilution and the overall financial health of the company.
Conclusion:
Investors should carefully consider the potential benefits and risks associated with this entitlement offer. Monitoring the company's progress in utilizing the raised funds effectively will be crucial for assessing the long-term impact on their investments.