Spacetalk Ltd Releases Second Supplementary Prospectus with Updated Warrant Details
SPA (SPA) Share Update September 2024 Thursday 26th
Spacetalk Ltd Issues Second Supplementary Prospectus
Spacetalk Ltd (ACN 091 351 530) has issued a Second Supplementary Prospectus to update the terms of its 2022 and 2023 Warrants. This document should be read in conjunction with the Original Prospectus dated 16 September 2024 and the First Supplementary Prospectus dated 23 September 2024.
Instant Summary:
- The exercise price of the 2022 Warrant is updated from $0.022 to $0.0227.
- The exercise price of the 2023 Warrant is updated from $0.022 to $0.05.
- Re-pricing of the 2023 Warrant will occur as a result of the Offers.
Background
Spacetalk Ltd has issued a Second Supplementary Prospectus, which updates the exercise prices of its 2022 and 2023 Warrants. The company had previously issued an Original Prospectus on 16 September 2024 and a First Supplementary Prospectus on 23 September 2024. This new document, dated 27 September 2024, has been lodged with the Australian Securities and Investments Commission (ASIC).
The 2022 Warrant, held by Pure Asset Management, was initially stated to have an exercise price of $0.022. This has now been corrected to $0.0227. The 2023 Warrant, also held by Pure Asset Management, was initially stated to have an exercise price of $0.022. This has now been updated to $0.05, with re-pricing to occur as a result of the Offers.
Amendments to the Prospectus
The Notes to the Warrants table in Section 2.3 of the Original Prospectus have been deleted and replaced with updated information. The 2022 Warrant is exercisable at $0.0227 per Share, and no re-pricing will occur as a result of the Offers. The 2023 Warrant is exercisable at $0.05 per Share, subject to any re-pricing in accordance with its terms.
The table below demonstrates the indicative re-price of the 2023 Warrant as a result of the Offers:
- 2023 Warrant Minimum Subscription: Weighted Market Capitalisation $16,021,315, Shares on issue post-raise 588,050,733, Implied Exercise Price $0.02724
- 2023 Warrant Maximum Subscription: Weighted Market Capitalisation $17,553,446, Shares on issue post-raise 651,889,525, Implied Exercise Price $0.02693
Consents and Authorisation
As of the date of this Second Supplementary Prospectus, all parties named in the Prospectus have not withdrawn their consent. The issue of this document has been authorised by a resolution of the Directors, and each Director has consented to its lodgement with the ASIC.
The updated exercise prices for the 2022 and 2023 Warrants are not expected to have a materially adverse effect on investors. However, the re-pricing of the 2023 Warrant could affect the company's capital structure and investor sentiment. The adjustments reflect the company's ongoing debt restructuring efforts and aim to align with current market conditions.
Investor Reaction:
Analysts may view the updated exercise prices as a necessary correction to align with market conditions. While the changes are not materially adverse, they highlight the importance of accurate financial reporting. Investor reaction is likely to be neutral, with a focus on the company's broader debt restructuring strategy.
Conclusion:
Investors should review the Second Supplementary Prospectus in detail and consult their financial advisors if necessary. The updates to the 2022 and 2023 Warrants are part of Spacetalk Ltd's ongoing efforts to maintain transparency and accuracy in its financial reporting. Staying informed about these changes is crucial for making well-informed investment decisions.