Join our daily newsletter At The Bell to receive exclusive market insights
- Conico (CNJ) is looking to raise up to around $7.02 million through a placement and non-renounceable rights issue
- The company will issue investors with 67 million shares at 6 cents each to raise $4.02 million
- It hopes to raise up to an extra $2.99 million through a rights issue, whereby eligible shareholders will be offered one for every 20 shares held at the same price as the placement
- Conico will use the money for exploration at its Ryberg and Mestersvig projects in Greenland
- Company shares are down 6.25 per cent to trade at 6 cents at 3:31 pm AEST
Conico (CNJ) is undertaking a placement and pro-rata non-renounceable rights issue.
The materials stock flagged its intention to raise capital when it entered a trading halt on Monday, September 13.
Conico will issue 67 million shares to sophisticated investors at an issue price of 6 cents per share to raise $4.02 million. The placement comes with one-for-two free-attaching options to acquire shares at 10 cents apiece on or before November 30 2024.
In addition, the company hopes to raise up to an extra $2,998,195 through a rights issue.
Conico will offer eligible shareholders one share for every 20 shares held on the record date being October 7 2021. These shares will also be offered at a price of 6 cents together with one-for-two free-attaching options.
RM Corporate Finance acted as the underwriter of the offer and will receive a one per cent lead manager fee as well as a 5 per cent placement fee.
Conico will use the money raised for near-term exploration at its Ryberg Project in Greenland as well as for its 2022 exploration program across the Ryberg and Mestersvig projects.
Additionally, the company will further assess its 50 per cent-owned Mt Thirsty Project and for working capital.
Company shares were down 6.25 per cent to trade at 6 cents at 3:31 pm AEST.
