leadf
logo-loader
viewVolt Resources Ltd

Volt Resources to raise up to $1.25 million in non-renounceable rights issue

Snapshot

The company’s chairman Asimwe Kabunga has agreed to underwrite up to $600,000 of any shortfall from the rights issue.

Volt Resources Ltd - Volt Resources to raise up to $1.25 million in non-renounceable rights issue

Quick facts: Volt Resources Ltd

Price: 0.01 AUD

ASX:VRC
Market: ASX
Market Cap: $21.17 m
Follow

Volt Resources Ltd (ASX:VRC) is undertaking a non-renounceable rights issue of ordinary shares to raise up to $1.25 million to progress approvals for listed debt note issues on the Dar es Salaam exchange (DES) and the Stock Exchange of Mauritius (SEM) .

Under the rights issue, eligible shareholders will be entitled to apply for one new ordinary fully paid share for every 12.9 ordinary shares held on Friday November 22.

The offer price of 1 cent represents a 23% discount to the last closing price of the company’s shares on the ASX on November 18 and a 24.5% discount to the five-day VWAP price up until that date.

Shortfall underwritten

Chairman Asimwe Kabunga has agreed to underwrite up to $600,000 of any shortfall from the rights issue.

New shares not taken up by eligible shareholders will become available under a shortfall facility and eligible shareholders who subscribe for their entitlement in full may apply for additional new shares under the oversubscription’s facility.

Review of Australian activities

In addition, the company will review its Australian-based structure and activities to reduce expenditure, particularly while stage-1 development funding activities are in progress for the Bunyu Graphite Project in Tanzania

To assist Volt to meet its working capital requirements whilst the rights issue is completed, Volt has secured $100,000 in short-term working capital funding from chairman Kabunga and CEO Trevor Matthews with $50,000 each on an unsecured commercial terms basis, with the money being repayable on or before December 31.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Volt Resources Ltd named herein, including the promotion by the Company of Volt Resources Ltd in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Volt Resources strives to be leading natural flake graphite producer

Volt Resources Ltd (ASX:VRC) CEO Trevor Matthews details progress and aspirations for the Bunyu Graphite Project in Tanzania, as demand and supply for the commodity shifts, sending up prices. Speaking about a potential note issue on the Dar es Salaam Stock Exchange, Matthews says, "we're...

on 18/4/18

2 min read