Oldfields Holdings Limited Announces Successful $1.08 Million Share Placement
OLDFIELDS HOLDINGS LIMITED (OLH) Share Update July 2024 Monday 29th
Oldfields Holdings Limited Raises $1.08 Million Through Share Placement
Oldfields Holdings Limited (ASX: OLH) has successfully raised approximately $1.08 million through a share placement, aimed at reducing debt and supporting working capital needs.
Instant Summary:
- Raised approximately $1.08 million through share placement.
- 12,303,183 fully paid ordinary shares issued at 8.75 cents per share.
- Clear Port AUS Pty Ltd becomes a substantial holder with 5.5% of the company.
- Funds to be used for debt reduction, inventory, and working capital.
- New shares issued without shareholder approval under ASX Listing Rule 7.1.
Placement Details
Oldfields Holdings Limited (ASX: OLH), an Australian-based company known for manufacturing and distributing quality products, has announced a successful share placement that raised approximately $1.08 million. The placement involved the issuance of 12,303,183 fully paid ordinary shares at an issue price of 8.75 cents per share.
The majority of the new shares were issued to Clear Port AUS Pty Ltd, a private investor who will now hold approximately 5.5% of the company. The remaining shares were issued to a private individual who is an existing shareholder of the company.
Use of Funds
The funds raised from this placement will be utilized for debt reduction, inventory, and ordinary working capital requirements. This strategic move is expected to strengthen the company's financial position and support its ongoing operations.
Share Issuance
The new shares were issued without the need for shareholder approval, utilizing the company's placement capacity under ASX Listing Rule 7.1. These shares will rank equally with existing ordinary shares in the company.
This announcement has been approved by the Managing Director, Michael Micallef. For further information, shareholders and interested parties can contact him directly.
The successful share placement and the resulting capital infusion are positive developments for Oldfields Holdings Limited. The funds raised will help reduce the company's debt and provide necessary working capital, which could improve its financial stability and operational efficiency. This move is likely to be viewed favorably by investors, potentially leading to a positive impact on the company's stock price.
Investor Reaction:
Analysts are likely to view this development as a positive step towards strengthening the company's financial health. The involvement of Clear Port AUS Pty Ltd as a substantial holder could also be seen as a vote of confidence in the company's future prospects. However, investors will be closely monitoring how effectively the raised funds are utilized in reducing debt and supporting operational needs.
Conclusion:
Oldfields Holdings Limited's successful share placement marks a significant step in enhancing its financial stability. Investors should keep an eye on the company's future announcements and performance to gauge the long-term impact of this capital raise. The strategic use of the raised funds will be crucial in maintaining investor confidence and driving future growth.