Join our daily newsletter At The Bell to receive exclusive market insights
- Pental (PTL) raises more than double its planned amount in a share purchase plan to mum and dad investors
- The says it received subscriptions for $4.47 million worth of new shares under the purchase plan after planning to raise $2 million
- The conditions of the purchase plan meant the Pental board could accept oversubscription, so the company says it will accept the full amount
- Pental launched the purchase plan in August in tandem with a private placement to help fund the purchase of eCommerce business Hampers with Bite
- Pental shares retreat slightly to close 2.56 per cent lower at 38 cents each this afternoon
Cleaning product maker Pental (PTL) has raised more than double its planned amount in a share purchase plan to mum and dad investors.
The company planned to raise $2 million by giving shareholders the opportunity to subscribe for $30,000 worth of new shares at 38 cents each. This price represented a 13.6 per cent discount to PTL’s last closing price before the placement was announced.
Pental said this morning it received applications for $4.47 million worth of new shares.
Importantly, the purchase plan allowed for the Pental board to accept oversubscription. As such, the company said it accepted all applications to pocket to total $4.47 million.
The company said the extra funds would help further de-risk the business as economic conditions remained uncertain thanks to the continuing presence of COVID-19 in many places around the world.
Pental added that the extra cash boost could also give it opportunities to pursue more growth opportunities.
New shares subscribed for under the purchase plan will be issued on Wednesday, September 22.
Why the raise?
The purchase plan was launched in tandem with a private placement to help fund the $28.3 million buyout of eCommerce business Hampers with Bite.
Pental completed the buyout on September 1, paying an initial $21.3 million in cash and $3 million in shares for full control of Hampers with Bite. The remaining $4 million will be paid subject to Hampers and Bit hitting some key earnings targets over the 2022 financial year.
Specifically, the eCommerce company needs to table $6.3 million in earnings before interest and tax over the financial year to be eligible for the earn-out payment.
Pental shares retreated slightly to close 2.56 per cent lower at 38 cents each this afternoon. The company has a $58.8 million market cap.
