NickelX Completes First Tranche of $2M Capital Raising - 24 July 2024
NICKELX LIMITED (NKL) Share Update July 2024 Wednesday 24th
NickelX Completes First Tranche of $2M Capital Raising
NickelX Limited (ASX: NKL) has successfully completed the first tranche of its $2 million capital raising initiative, securing $289,000 from new and existing investors.
Instant Summary:
- NickelX raises $289,000 in the first tranche of its $2 million capital raising.
- 14,453,790 shares issued at $0.02 per share.
- Shares placed with new and existing institutional and sophisticated investors.
- Completion of the balance of the capital raising subject to shareholder approval.
Capital Raising Details
NickelX Limited (ASX: NKL) has announced the completion of the first tranche of its $2 million capital raising, which was initially revealed on 17 July 2024. The first tranche successfully raised approximately $289,000 through the placement of 14,453,790 fully paid ordinary shares at a price of $0.02 per share. These shares were allocated to new and existing institutional and sophisticated investors.
The shares were issued under the company's existing placement capacity in accordance with ASX Listing Rules 7.1 and 7.1A. The completion of the remaining balance of the capital raising is contingent upon shareholder approval, which will be sought at an upcoming shareholder meeting.
Regulatory Compliance
In compliance with Section 708A(5)(e) of the Corporations Act 2001, NickelX has provided the necessary notice confirming the issuance of the shares without disclosure to investors under Part 6D.2 of the Corporations Act. The company has affirmed its adherence to the provisions of Chapter 2M of the Corporations Act and sections 674 and 674A. Additionally, NickelX has stated that there is no 'excluded information' that needs to be disclosed under sections 708A(7) and 708A(8) of the Corporations Act.
Future Prospects
NickelX is focused on its uranium and gold exploration projects while conducting a strategic review of the company to identify other potential opportunities aimed at creating shareholder value. The company has cautioned that forward-looking statements in the announcement are subject to various risks and uncertainties, which could result in actual outcomes differing significantly from projections.
The successful completion of the first tranche of the capital raising is a positive development for NickelX, as it demonstrates investor confidence in the company's strategic direction and projects. The funds raised will support NickelX's ongoing exploration activities and strategic initiatives. However, the completion of the full $2 million capital raising is subject to shareholder approval, which introduces an element of uncertainty. The market reaction to this announcement is likely to be cautiously optimistic, with investors awaiting further developments.
Investor Reaction:
Initial investor reactions have been positive, with many expressing confidence in NickelX's ability to secure the necessary funds to advance its projects. Analysts have noted that the successful raising of $289,000 in the first tranche is a strong indicator of market confidence in the company's strategic direction.
Conclusion:
Investors should keep an eye on the upcoming shareholder meeting, where the approval of the remaining balance of the capital raising will be decided. The outcome of this meeting will be crucial in determining NickelX's ability to fully realize its $2 million capital raising goal. Continued monitoring of NickelX's strategic initiatives and exploration progress is recommended for investors looking to capitalize on potential growth opportunities.