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- Energy World Corporation (EWC) is looking to raise $65 million through a fully underwritten non-renounceable entitlement offer
- Eligible shareholders may subscribe for one new share for every 2.21 existing shares held at an issue price of 8 cents — representing a 17.5 per cent discount to EWC’s 30-day volume-weighted average price
- The integrated energy company will issue over 812.5 million shares and its largest shareholder, Energy World International, has committed to subscribe for up to its current holding of 38.8 per cent
- The money will be used to pay the Standard Chartered Convertible Note, which has now been assigned to Augusta Investments and for project development
- Company shares are up 11.1 per cent and are trading at 10 cents
Energy World Corporation (EWC) is looking to raise $65 million through a fully underwritten non-renounceable one-for 2.21 entitlement offer.
Eligible shareholders will be given the opportunity to subscribe for one new fully paid ordinary share for every 2.21 existing shares held at 8 cents per share. This issue price represents a 17.5 per cent discount to EWC’s 30-day volume-weighted average price.
The integrated energy company will issue 812,503,019 shares through the entitlement offer which will be fully underwritten by Gleneagle Securities.
Additionally, EWC’s largest shareholder, Energy World International, has committed to subscribe for up to its current pro-rata shareholding of 38.8 per cent.
Roughly $43 million will be allocated to paying the Standard Chartered Convertible Note which has now been assigned to Augusta Investments.
Around $18 million will fund the development of EWC’s projects in Australia and Southeast Asia and the remaining $4 million will be used to cover the costs of the entitlement offer.
The entitlement offer is expected to open on Wednesday, March 31 and will close on Tuesday, April 20. The new shares are expected to settle on Monday, April 26.
Company shares are up 11.1 per cent and are trading at 10 cents at 1:14 pm AEDT.
