Peako Limited Completes Rights Issue, Raising $469,212 for Exploration and New Projects
PEAKO LIMITED (PKO) Share Update August 2024 Thursday 8th
Peako Limited Successfully Completes Rights Issue, Raising $469,212
Peako Limited (ASX: PKO) has successfully completed its renounceable rights issue, raising $469,212 before costs. The funds will be used for working capital and to support the company's exploration and new project opportunities.
Instant Summary:
- Peako Limited raises $469,212 through a renounceable rights issue.
- 157,034,171 new fully paid ordinary shares and 78,517,093 new options to be issued.
- Options exercisable at $0.0075, expiring on 28 February 2027.
- Company directors demonstrate confidence by taking up $203,584 in entitlements.
- Funds to be used for exploration and new project opportunities.
Details of the Rights Issue
Peako Limited (ASX: PKO) has announced the successful completion of its renounceable rights issue, which was initially announced on 17 July 2024. The rights issue has raised a total of $469,212 before costs. This capital raising effort involved the issuance of 157,034,171 new fully paid ordinary shares and 78,517,093 new options, which are exercisable at $0.0075 and will expire on 28 February 2027.
The rights issue was fully underwritten, ensuring that all offered shares were taken up. The company will work closely with the underwriter to finalize the issuance of shortfall securities over the coming days. The proceeds from this rights issue will be allocated to working capital, enabling Peako to undertake exploration on its existing projects and to review new project opportunities.
Director Participation and Allocation Details
The company's directors have shown their commitment to Peako's future by taking up entitlements amounting to $203,584. This move demonstrates the directors' confidence in the company's projects and its long-term prospects.
The allocation of funds and securities is as follows:
- Pro-rata rights taken up: $390,205.66 for 130,068,552 shares and 65,034,288 options.
- Shortfall placed with shareholders: $79,006.07 for 26,335,357 shares and 13,167,674 options.
- Shares allocated to nominee for ineligible holders: 630,262 shares and 315,131 options.
The new securities are expected to be issued on Friday, 9 August 2024, in accordance with the timetable outlined in the prospectus. The remaining shortfall securities, which include 194,355,975 new shares and 97,177,987 new options, will be issued in accordance with the underwriting agreement.
Company's Statement
Commenting on the successful close of the entitlement offer, Peako's Executive Director, Rae Clark, expressed gratitude to the shareholders for their support. 'The Board thanks our shareholders for their support of the rights issue,' said Clark.
The successful completion of the rights issue and the capital raised will provide Peako Limited with the necessary funds to continue its exploration activities and pursue new project opportunities. This capital injection is likely to bolster investor confidence in the company's future prospects. However, the issuance of a significant number of new shares and options may lead to some dilution of existing shareholders' equity. Overall, the market reaction is expected to be moderately positive, reflecting confidence in the company's strategic direction and the directors' commitment.
Investor Reaction:
Analysts are likely to view the successful capital raising as a positive development for Peako Limited. The directors' participation in the rights issue demonstrates strong internal confidence, which may reassure investors. However, some caution may arise due to the potential dilution effect of the new shares and options. Overall, the market sentiment is expected to be cautiously optimistic.
Conclusion:
Investors should keep an eye on Peako Limited's upcoming exploration activities and new project opportunities, as these developments could significantly impact the company's future performance. The successful rights issue and the directors' participation highlight the company's commitment to growth and exploration. Investors are encouraged to monitor Peako's progress and consider the potential long-term benefits of their investments.