- Water treatment company Clean TeQ (CLQ) has raised just under $19 million for its potential water purification spin-off
- Clean TeQ raised the additional funds via a private placement of 75.8 million shares priced at 25 cents each — a 13.8 per cent discount to the last closing price
- $3 million in placement proceeds were subscribed for by CLQ Co-Chairman Robert Friedland, though the purchase is subject to shareholder approval
- In the meantime, Clean TeQ will give its shareholders the chance to take part in the capital raise by launching a share purchase plan (SPP)
- Each shareholder can apply for up to $30,000 worth of new shares, which will be offered at the same price as the placement at 25 cents each
- Clean TeQ will use the additional capital for its spin-off, the NematiQ joint venture and its Sunrise Battery Materials Complex
- Shares in CLQ are currently trading down 8.62 per cent at 26.5 cents each
Clean TeQ (CLQ) has raised just under $19 million for its potential water purification spin-off.
The water treatment company raised $18.98 million via a private placement of 75.8 million shares.
Each new share was priced at 25 cents each, which represents a 13.8 per cent discount to CLQ’s last closing price on November 20.
Among the investors taking part in the placement was Clean TeQ’s own Co-Chairman Robert Friedland, who bought $3 million in new CLQbshares.
His purchase is subject to shareholder approval, however, the rest of the new shares issued under the placement are expected to settle on November 27.
In the meantime, Clean TeQ has also announced it will give its shareholders a chance to take part in the capital raise by launching a share purchase plan (SPP).
The SPP allows around 7000 eligible shareholders the chance to buy up to $30,000 worth of new shares, also priced at 25 cents each.
The SPP offer will open on December 3 and close over a month later on January 8 before shares are issued to shareholders on January 19.
Clean TeQ has revealed it will use the additional capital for its potential water company spin-off, which it first flagged in September this year.
A review has been launched to consider the demerger, with that review expected to wrap up and make findings in the first quarter of 2021.
Meanwhile, the company will also use the extra equity for its NematiQ joint venture and its Sunrise Battery Materials Complex, where drilling is underway.
Shares in CLQ are currently trading down 8.62 per cent at 26.5 cents each at 11:58 am AEDT.