- Element 25 (E25) has raised $9.2 million through the set-off of 4.8 million collateral shares previously issued to Acuity Capital
- The shares were issued under a controlled placement agreement (CPA), which the company has now terminated
- Element 25 will use the proceeds to fund the stage two expansion of manganese concentrate production at its Butcherbird Project
- Proceeds will also fund the acceleration of the company’s feasibility study work programmes for producing battery-grade manganese sulphate
- Element 25 is up 0.99 per cent and trading at $2.04 per share
Element 25 (E25) has raised $9.2 million through the set-off of 4.8 million collateral shares previously issued to Acuity Capital.
The company originally issued those collateral shares to Acuity Capital under a controlled placement agreement (CPA). The effect of the set-off shares will be reducing the total number of collateral shares that Acuity Capital will otherwise be required to return to Element 25 when the CPA is terminated.
As a result, the set-off shares now have a deemed price of $1.9167 each. In comparison, the shares’ 15-day volume-weighted average price (VWAP) up to and including May 5, 2021, was $2.0506, meaning that the set-off shares were priced at a 6.5 per cent discount.
Element 25 will primarily use the $9.2 million in proceeds from the set-off to fund the planned stage two expansion of manganese concentrate production. This expansion of production will take place at the company’s 100 per cent owned Butcherbird Manganese Project in Western Australia.
Additionally, some of the proceeds will also fund the acceleration of the company’s feasibility study work programs. The programmes in question are studying the feasibility of producing battery-grade, high-purity manganese sulphate (HPMSM) from the manganese concentrate that is produced during stage two at the Butcherbird Project.
Having reaped $9.2 million (after costs) from the set-off, Element 25 has now terminated the CPA, at no cost to the company. This will trigger the return of Acuity Capital’s collateral shares to Element 25.
Element 25 is up 0.99 per cent, trading at $2.04 per share at 11:34 am AEST.