- The Frugl Group (FGL) has received firm commitments to undertake a $1.49 million two-phase placement
- All up, 49.5 million fully paid ordinary shares will be issued to sophisticated and professional investors at three cents per share
- The placement will be undertaken in two phases, with both issuing 24.75 million shares to raise $742,500
- In addition, a further $300,000 will be raised through the issue of 10 million shares to Director Mathew Walker, however, this is subject to shareholder approval
- Frugl will use the money to undertake marketing, research and development, and support the business development of its grocery comparison app, frugl
- Company shares are steady on the market and have been trading for 3.3 cents since September 14
The Frugl Group (FGL) has received firm commitments to undertake a $1.49 million two-phase placement.
The company entered back-to-back trading halts on September 16 but did not disclose how much it intended to raise at the time.
All up, 49.5 million fully paid ordinary shares will be issued to sophisticated and professional investors at three cents per share — representing a 3.6 per cent discount to the company’s 15-day volume-weighted average price.
The placement will be undertaken in two phases, with phase one issuing 24.75 million shares to raise $742,500.
Shares under this phase are expected to settle on September 25 and be quoted on September 29.
Phase two, which is subject to shareholder approval, will issue the same amount of shares to raise a further $742,500.
If shareholder approval is received at the annual general meeting in November, shares under phase two will settle and be issued in December 2020.
In addition, Director Mathew Walker intends to subscribe for 10 million shares to raise a further $300,000, however, this is also subject to shareholder approval.
Frugl will use the money to undertake marketing, research and development, and support the business development of its grocery comparison app, frugl.
Company shares are steady on the market and have been trading for 3.3 cents since September 14.