VHM Limited Completes Successful Placement and Announces Share Purchase Plan
VHM (VHM) Share Update July 2024 Thursday 25th
VHM Limited Completes $1.8 Million Placement and Announces Share Purchase Plan
VHM Limited (ASX: VHM) has successfully completed a $1.8 million placement and announced an upcoming Share Purchase Plan (SPP) to raise an additional $3 million. This funding will support the development of the Goschen Project.
Instant Summary:
- Raised $1.8 million through a placement at 42c per share.
- Strong support from top shareholders and new institutional investors.
- Share Purchase Plan to raise up to $3 million starting 31 July 2024.
- Funds to be used for ongoing work and environmental approvals for the Goschen Project.
Placement Details
VHM Limited has successfully raised $1.8 million through a placement to institutional, sophisticated, and professional investors. This was achieved by issuing approximately 4.3 million new fully paid ordinary shares at an offer price of 42c per share. The placement received strong support from the company's top shareholders and introduced new institutional investors to the register.
The offer price of 42c per share represents a 27.6% discount to the last closing price of 58c on 23 July 2024 and a 17.6% discount to the 10-day volume-weighted average price of 51c. The new shares issued under the placement will rank equally with the existing ordinary shares on issue.
Share Purchase Plan
In addition to the placement, VHM Limited has announced a Share Purchase Plan (SPP) to raise up to $3 million. The SPP will be offered at the same price as the placement, 42c per share, and will be available to eligible shareholders in Australia and New Zealand who were registered on the record date of 24 July 2024.
Eligible shareholders will have the opportunity to apply for up to $30,000 worth of new shares under the SPP. The Board of Directors intends to participate in the SPP for an aggregate amount of $90,000. The SPP offer booklet, including terms and conditions, is expected to be released on 31 July 2024.
Use of Funds
The proceeds from the placement and SPP, combined with the company's existing cash of $6.3 million, will be used to support ongoing work programs and provide working capital. These funds will help advance the development of the Goschen Project, particularly in securing ministerial approval for the Environmental Effects Statement (EES) ahead of a Final Investment Decision in the first quarter of 2025.
Equity Raising Timetable
The indicative timetable for the equity raising is as follows:
- SPP Record Date: 24 July 2024
- Equity raising announcement: 25 July 2024
- Settlement of Placement: 31 July 2024
- Issue and trading of new shares under Placement: 1 August 2024
- SPP Offer Booklet lodged with ASX: 31 July 2024
- Opening Date of SPP Offer: 31 July 2024
- Closing Date of SPP Offer: 14 August 2024
- Announcement of SPP results: 19 August 2024
- Issue and trading of new shares under SPP: 20 August 2024
The successful placement and upcoming SPP are positive developments for VHM Limited, providing necessary funds to advance the Goschen Project. The discounted offer price may lead to short-term stock price volatility, but the long-term outlook remains positive as the company progresses towards key milestones.
Investor Reaction:
Investors and analysts have reacted positively to the news, highlighting the strong support from existing shareholders and the introduction of new institutional investors. The successful funding round is seen as a vote of confidence in the company's future prospects.
Conclusion:
VHM Limited's successful placement and upcoming SPP are crucial steps in securing the necessary funding for the Goschen Project. Investors should keep an eye on the progress of the project and the company's ability to meet its development milestones. Participation in the SPP could be a valuable opportunity for eligible shareholders.