- BikeExchange (BEX) is looking to raise up to $5.67 million through a placement and share purchase plan
- Under the placement, BEX will issue 151.3 million shares to professional and sophisticated investors at 1.6 cents to raise an initial $2.4 million
- This amount could be increased to $2.67 million if shareholders approve Non-Executive Director Andrew Ryan investing up to $250,000 in the company
- The share purchase plan will then aim to raise the other $3 million, with all funds going towards platform development, ongoing operations, working capital and costs of the offer
- BEX shares are up 5.56 per cent to trade at 1.9 cents at 1:49 pm AEDT
BikeExchange (BEX) is looking to raise up to $5.67 million through a placement and share purchase plan (SPP).
The bicycle retailer has received commitments to raise around $2.4 million through a placement under which it will issue 151.3 million shares to professional and sophisticated investors at 1.6 cents per share.
The issue price represents a 5.88 per cent discount to BEX’s five and 15-trading day volume-weighted average prices and an 11.11 per cent discount to BEX’s last closing price on October 31.
Subject to shareholder approval, Non-Executive Director Andrew Ryan will invest up to $250,000 in BikeExchange under the placement terms. If shareholders approve, the total number of shares to be issued under the placement will increase to 166.9 million to raise $2.67 million.
Once the placement is complete, the SPP will open to enable eligible shareholders to subscribe for up to $30,000 worth of shares at the same price as the placement.
The SPP aims to raise up to $3 million, but BEX may accept applications in excess of this amount. If less than $3 million is applied for under the SPP, company directors will seek to place the shortfall of shares to reach the $3 million all-up.
BikeExchange will use the money from the placement and SPP to support platform development, ongoing operations, working capital and costs of the offer.
BEX shares were up 5.56 per cent to trade at 1.9 cents at 1:49 pm AEDT.