Tivan Limited Successfully Raises $1.155 Million Through Shortfall Offer
TVN (TVN) Share Update November 2024 Sunday 17th
Tivan Secures $1.155 Million in Shortfall Offer Commitments
Tivan Limited (ASX: TVN) has successfully secured $1.155 million from retail and high net worth investors as part of its shortfall offer, following the recent pro-rata entitlement offer.
Instant Summary:
- Tivan raises $1.155 million from shortfall offer.
- New Shares priced at $0.05 each with free unlisted options.
- 23.1 million New Shares and 11.55 million New Options issued.
- Remaining shortfall: 96.65 million New Shares and 48.33 million New Options.
- Shortfall Offer closes on 2 December 2024.
Background on the Entitlement Offer
Tivan Limited recently conducted a pro-rata entitlement offer, allowing eligible shareholders to purchase new shares at $0.05 each, along with one free unlisted option for every two shares. This offer closed on 2 September 2024, raising $1.523 million.
However, there was a shortfall of 119.75 million New Shares and 59.88 million New Options. To address this, Tivan initiated a Shortfall Offer, aiming to place the remaining shares and options under similar terms.
Details of the Shortfall Offer
The Shortfall Offer has now secured firm commitments totaling $1.155 million from retail and high net worth investors. This was achieved through the placement of 23.1 million New Shares and 11.55 million New Options. Notably, no brokerage fees were incurred as the shares were directly placed and settled by Tivan.
The New Shares and Options are scheduled for issuance on 20 November 2024, with an application for ASX quotation to follow. The remaining shortfall consists of 96.65 million New Shares and 48.33 million New Options, which the Directors may place at their discretion.
Future Steps and Closing of the Offer
The Shortfall Offer is not open to the general public. Instead, participation is by invitation from the Directors. The offer is set to close on 2 December 2024, although the Directors may choose to close it earlier.
The successful raising of $1.155 million is a positive development for Tivan, providing additional capital to support its operations and strategic initiatives. This action demonstrates investor confidence in the company's prospects, which could positively influence Tivan's stock price. However, the substantial remaining shortfall indicates that there is still work to be done to fully capitalize on the offer.
Investor Reaction:
Analysts may view the successful raising of funds as a sign of underlying investor confidence. However, the remaining shortfall could raise questions about the company's ability to attract sufficient interest in the current market environment.
Conclusion:
Investors should keep an eye on Tivan's progress in placing the remaining shortfall shares and options. The company's ability to secure additional commitments will be crucial in maintaining investor confidence and supporting its growth strategy.