Tempest Minerals Announces Completion of Rights Issue Offer
TEMPEST MINERALS LIMITED (TEM) Share Update July 2024 Wednesday 10th
Tempest Minerals Completes Rights Issue Offer
Tempest Minerals Limited (ASX: TEM) has successfully completed its pro-rata non-renounceable entitlement offer, raising $194,015 through the issuance of new shares.
Instant Summary:
- Rights issue offer completed with $194,015 raised.
- 24,251,886 new shares applied for in total.
- Shortfall of 79,573,471 shares remains.
- Eligible shareholders' take-up rate approximately 23.36%.
Offer Details
Tempest Minerals Limited (ASX: TEM) has announced the successful completion of its pro-rata non-renounceable entitlement offer. The offer consisted of one fully paid ordinary share for every five fully paid ordinary shares held, priced at $0.008 per new share.
The company received applications for a total of 24,251,886 shares, amounting to $194,015. This included 17,662,016 entitlement shares and 6,589,870 additional shares through oversubscriptions.
Shortfall and Future Plans
Despite the successful raise, the offer resulted in a shortfall of 79,573,471 shares, reflecting a take-up rate of approximately 23.36% from eligible shareholders. The new shares are expected to be issued on Friday, 12 July 2024, following the timetable outlined in the prior ASX announcement dated 17 June 2024.
The company expressed gratitude to its shareholders for their support and highlighted its excitement to further progress exploration activities at its Western Australian projects, including the upcoming drilling at the Remorse Target.
Shortfall Allocation
Under the terms of the offer issue, as outlined in section 1.11 of the Rights Issue Offer Document, the directors have the discretion to allocate the shortfall within three months of the offer's closing date. Various parties who have previously expressed interest in taking up the shortfall will be approached.
The completion of the rights issue offer and the subsequent shortfall highlight mixed investor sentiment towards Tempest Minerals. While the raised funds will support ongoing exploration projects, the significant shortfall may indicate caution among investors. This could lead to a neutral to slightly negative impact on the stock price as the market digests the news.
Investor Reaction:
Investor reactions have been varied. Some shareholders appreciate the opportunity to support the company's exploration initiatives, while others are concerned about the substantial shortfall and its implications.
Conclusion:
Investors should keep an eye on Tempest Minerals' upcoming drilling activities and any further announcements regarding the shortfall allocation. The company's ability to secure additional interest in the shortfall will be crucial in maintaining investor confidence.