Prodigy Gold Successfully Concludes Entitlement Offer, Raising Over $429,000
PRODIGY GOLD NL (PRX) Share Update September 2024 Monday 30th
Prodigy Gold Completes Entitlement Offer, Raising $429,363.27
Prodigy Gold NL (ASX: PRX) has successfully concluded its non-renounceable pro rata entitlement offer, raising a total of $429,363.27 through the issuance of new shares and attaching options.
Instant Summary:
- Entitlement offer closed on 26 September 2024.
- Raised $429,363.27 through the issuance of 214,681,331 new shares.
- Issued 143,120,754 unquoted attaching options.
- Netwealth Super applied for 3,833,835 shortfall shares, conditional on shareholder approval.
- Directors may offer and place the shortfall of 838,765,902 shares within three months.
Entitlement Offer Details
Prodigy Gold NL (ASX: PRX) has announced the successful closure of its non-renounceable pro rata entitlement offer. The offer, which was announced on 20 August 2024, allowed shareholders to purchase one new fully paid ordinary share for every two shares held at an issue price of $0.002. Additionally, shareholders received two unquoted attaching options for every three new shares issued.
The offer closed on 26 September 2024, resulting in the issuance of approximately 214,681,331 new shares and 143,120,754 attaching options. This raised a total of $429,363.27 for the company. The new shares and options will be issued on 3 October 2024, with normal trading expected to commence on 4 October 2024.
Shortfall and Conditional Shares
Netwealth Super, an entity associated with Mr. Mark Edwards, submitted valid applications for 3,833,835 shortfall shares, raising an additional $7,667.67. This also includes 2,555,890 attaching options, conditional on the company obtaining shareholder approval.
The directors of Prodigy Gold now have the discretion to offer and place the shortfall of 838,765,902 shares not subscribed for under the entitlement offer. These shares, along with the attaching options, can be issued at any time within three months of the closing date, but not at an issue price of less than $0.002. The attaching options have an exercise price of $0.005 and are exercisable until 30 November 2027.
Next Steps and Investor Participation
Investors who are not currently eligible shareholders but wish to participate in the public shortfall offer are encouraged to contact Prodigy Gold's share registry or their broker. The directors retain the discretion to refuse any applications under the public shortfall offer, either in whole or in part.
The successful completion of the entitlement offer is a positive development for Prodigy Gold, providing the company with additional capital to further its operations. The issuance of new shares and options may lead to some dilution of existing shares, but the raised funds could enhance the company's growth prospects.
Investor Reaction:
Analysts are likely to view the successful raising of funds as a positive sign of investor confidence in Prodigy Gold. However, the potential dilution of shares and the conditional nature of some applications may lead to mixed reactions among investors.
Conclusion:
Investors should keep an eye on the issuance of the new shares and options on 3 October 2024 and monitor the company's use of the raised funds. Prodigy Gold's ability to effectively utilize this capital will be crucial in maintaining investor confidence and driving future growth.