- Allegiance Coal (AHQ) successfully raises $15 million under an institutional entitlement offer
- The funds were raised through the issue of approximately 300 million new shares at 5 cents
- The institutional component is part of Allegiance Coal’s $33.6 million capital raising which also consists of a retail entitlement offer and shortfall offer
- Allegiance Coal plans to use the money to purchase equipment and refurbish the Black Warrior and New Elk mines, as well as for working capital
- Shares in Allegiance Coal are down 18.6 per cent on the market and are trading at 7 cents at 11:58 am AEDT
Allegiance Coal (AHQ) has successfully raised $15 million under an institutional entitlement offer.
The funds were raised through the issue of approximately 300 million new shares at 5 cents – a 41.9 per cent discount to the company’s closing price of 8.6 cents on October 4.
The institutional component is part of Allegiance Coal’s $33.6 million capital raising which also consists of a retail entitlement offer and shortfall offer.
The retail offer will open on October 13 with eligible shareholders able to subscribe for eight new shares for every five held. Shares will be priced the same as the institutional offer at five cents.
Shareholders who apply for their full entitlement will be able to apply for additional shares under a top-up facility.
Allegiance Coal stated it would use the funds to purchase equipment and refurbish the Black Warrior and New Elk mines, as well as for working capital.
Shares in Allegiance Coal were down 18.6 per cent on the market and were trading at 7 cents at 11:58 am AEDT.