RPM Automotive Group Ltd (ASX:RPM) has received strong support from new investors, including a number of high-quality Australian institutions, for a placement which has closed oversubscribed and raised $5.1 million.
Firm commitments have been received from clients of Everblu Capital, Aiken Murray, Sequoia Wealth Management and DH Flinders to raise the funds within two tranches.
The first tranche of around $2.4 million will be completed under the company’s 15% capacity and the second tranche of $2.7 million (before expenses) will be subject to shareholder approval in late December 2020 along with the issue of the unlisted options.
RPM will place 27,059,736 shares at an issue price of 19 cents per share plus a 1 for 3 free attaching unlisted option exercisable at 38 cents with an expiry date of two years from the date of issue.
Provides "outstanding platform”
Managing director Clive Finkelstein said: “The placement was well oversubscribed and will provide an outstanding platform for RPM to grow and expand its current businesses together with the potential to acquire other new opportunities.
“We are delighted by the strong support for the placement from new investors, including a number of high-quality Australian institutions that have joined our register and I would like to sincerely thank everyone who participated in the raising for their support.”
The issue of the shares and options will be subject to shareholder approval and the placement will enable the company to advance its operations together with providing working capital and funding for potential new opportunities.