Hastings Technology Metals (ASX:HAS) announced on Wednesday it will execute a renounceable rights issue to raise $22M.
New shares will be priced at 36cps with a 1-for-3 attaching option at 50cps two years post issue.
Eligible shareholders may apply for new shares in addition to their entitlement on the same terms where shortfall is available.
“Under the Rights Issue, eligible existing shareholders are invited to subscribe for nine (9) new fully paid ordinary shares (“New Shares”) for every 20 existing Shares held at the Record Date of Wednesday, 3 April 2024,” the company specified.
Hastings was quick to point out on Wednesday that its own C-Suite will participate in the rights issue.
The ultimate outcome of the $22M raise is for working capital to continue development of its Yangibana REE Project, including the completion of project funding.
The issue is partially underwritten.
“All of the Company’s Board and senior management team intend to take up their entitlement in the Rights Issue, underlining our conviction in the Yangibana Project’s potential to become a world-class rare earth operation,” Hastings Chair Charles Lew said.
“We are pleased to be able to offer our existing shareholders the opportunity to participate in this current funding round which will facilitate the continuation of our project development workstreams for the Yangibana Project.”
HAS last traded at 49.5cps.