- DGR Global (DGR) is set to bank $3 million from three separate investors as an interim measure while it considers future funding alternatives
- A total of 57,692,308 company shares are set to be issued to three unnamed parties at 5.2 cents each
- Proceeds from this raise are set to go towards maintaining the company’s 19 per cent stake in Armour Energy (AJQ), where DGR’s Nicholas Mather sits as Executive Chair
- The DGR Global board says it has identified several funding options for the company moving forward
- GDR Global shares are trading in the grey at 6 cents
DGR Global (DGR) is set to bank $3 million from three separate investors as an interim measure while it considers future funding alternatives.
A total of 57,692,308 new shares are set to be issued to the unnamed parties at $0.052 per share and will be subject to a nine-month escrow period.
The placement comes several months after DGR notified investors it had two-quarters worth of funding remaining — approximately $812,000 — via its April quarterly cashflow report.
Proceeds from this raise are set to go towards maintaining its 19 per cent stake in fellow ASX-lister Armour Energy (AJQ), where DGR Global’s Chief Executive Officer Nicholas Mather sits as Executive Chair.
Prior to today’s announcement, DGR last raised roughly $16 million via an institutional and retail capital raise in November 2020 — a large amount of which went to paying off a convertible note facility.
The DGR Global board said it has identified several funding options for the company moving forward and will be utilising its balance sheet in a bid to “minimise shareholder dilution”.
The company’s asset portfolio includes an 8.9 per cent stake in London Stock Exchange-listed SolGold, in which Mr Mather is Chief Executive Officer.
The company also lists a 14 per cent shareholding in IronRidge Resources, where Mr Mather sits as a board member.
GDR Global shares were trading in the grey at 6 cents at 1:35 pm AEST.