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- Roots Sustainable Agricultural Technologies (ROO) is raising $650,000 through a placement to sophisticated and professional investors
- The company will issue 216.6 million CDIs at 0.3 cents each to raise the funds, representing a 25 per cent discount to its five-day volume-weighted average price
- Subject to shareholder approval, investors will receive one free attaching option for every CDI subscribed for, with the options exercisable at 0.5 cents within five years
- Roots plans to use the money for sales and marketing, operating expenses, and working capital and to pay down existing debt
- ROO shares last traded at 0.4 cents
Roots Sustainable Agricultural Technologies (ROO) is set to raise $650,000 through a placement to private investors.
The company today said it had received firm commitments from sophisticated and professional investors to undertake the placement, under which it will issue roughly 216.6 million CHESS depositary interests (CDIs).
The placement CDIs will be issued at 0.3 cents, which represents a 25 per cent discount to Roots’ five-day volume-weighted average price.
Subject to shareholder approval, investors will receive one free-attaching option for every placement CDI subscribed for. The options will be exercisable at 0.5 cents within a five-year period.
Roots director Adam Blumenthal intends to participate in the placement to an amount of $200,000, which will see him subscribe for 66.6 million CDIs and 66.6 million attaching placement options.
The company said it planned to use placement funds for sales and marketing, operating expenses, working capital and to pay down its existing debt of $365,000.
EverBlu Capital Corporate has acted as lead manager to the placement and will receive 6 per cent of the total funds raised.
Subject to shareholder approval, EverBlu will also be issued 10 million CDIs and the same number of placement options.
ROO shares last traded at 0.4 cents.
