The underwritten equity raising comprises the institutional component of the accelerated pro-rata non-renounceable entitlement offer and the institutional placement.
This institutional offer was strongly supported by existing and new institutional investors from Australia and overseas.
A retail entitlement offer will open on August 14, 2020, and is expected to close on August 25, 2020, with the aim of raising A$27 million.
Fully funded to deliver SOP project
The equity raising in conjunction with execution of a US$138 million (~A$203 million) debt financing package sees the company fully funded to deliver the Lake Way Sulphate of Potash Project in Western Australia on schedule.
The debt financing package was recently executed with Taurus Mining Finance Fund No2 LP and the Clean Energy Finance Corporation (CEFC).
SO4's institutional offer of 142,083,323 new shares, comprises 55,410,624 new shares to be issued under the institutional entitlement offer and 86,672,699 new shares to be issued under the placement.
Institutional offer shares are expected to be issued on August 17, 2020.
The placement shares will be issued under Listing Rule 7.1 (51,447,505 shares) and Listing Rule 7.1A (35,225,194 shares).
Retail entitlement offer
Eligible retail shareholders with an address in Australia, New Zealand, or the United Kingdom will be invited to participate in the retail component at the same offer ratio as the institutional entitlement offer.
They will be able to subscribe for one new share for every 3.2 shares held on the record date of 5.00pm (WST) on August 11, 2020.
These new shares are offered at the same application price of A$0.50 per new share.
Eligible retail shareholders who have applied for their entitlement under the retail entitlement offer will also be entitled to apply for additional new shares over and above their entitlement with a priority right for up to a maximum of 50% above their entitlement.
This is subject to the board’s discretion to scale back applications for additional new shares in accordance with the allocation policy to be detailed in the retail offer booklet.
Euroz Securities Limited and Canaccord Genuity Group Inc acted as joint lead managers, joint underwriters and bookrunners to the equity raising.
Argonaut Limited acted as co-manager to the equity raising. Cenkos Securities Plc is the company’s United Kingdom corporate broker.