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- Fitzroy River Corporation (FZR) has raised just over $500,000 through a retail entitlement offer, falling short of expectations by roughly $1 million
- The resources investment company launched a $2.6 million one-for-four entitlement offer in February, with new shares at 12 cents each
- This represents a discount of around 19 per cent to Fitzroy’s last closing price before the raise was launched
- An institutional segment of the entitlement offer raised around $1.1 million and Fitzroy was expecting retail investors to raise the remaining $1.5 million
- However, mum and dad investors only subscribed for 4.17 million shares to raise the $500,000
- Nevertheless, the retail segment of the raise was fully underwritten, so the shortfall of shares will now be allotted to the underwriters
- Shares in Fitzroy River closed grey today at 13 cents per share
Fitzroy River Corporation (FZR) has raised just over $500,000 through a retail entitlement offer, falling short of expectations by roughly $1 million.
The resources investment company first announced the capital raising plan in February, targeting $2.6 million to repay an outstanding debt facility.
Under the entitlement offer, investors could buy one new share for every four shares already held at 12 cents each — a discount of around 19 per cent to the company’s last closing price when the raise was announced.
The entitlement offer was split into two parts, with an institutional component of the offer completed on February 19 and raising around $1.1 million. At the time, Fitzroy said it was expecting the retail component of the offer to raise the remaining $1.5 million.
However, it seems mum and dad investors weren’t as eager to take part in the raise as Fitzroy hoped, with only 4.17 million shares subscribed for to raise the $500,000.
Thankfully for Fitzroy, the retail component of the raise was fully underwritten by Taylor Collison, meaning the shortfall of just under $1 million worth of shares will be allotted to the underwriters.
The new shares taken up under the entitlement offer will be allotted on Wednesday, Mach 23, to begin trading on-market on March 24.
Shares in Fitzroy River closed grey today at 13 cents per share. The company has a $12.41 million market cap.
