- Investment business HGL (HNG) is raising up to $15 million through a private and conditional placement
- Around 22.5 million shares are being issued to investors through a private placement which is raising $7.4 million
- A further $7.6 million is being raised through a conditional placement but this will require shareholder approval at a meeting to be held next February
- HGL plans to use the money to support its balance sheet as it progresses investment initiatives
- Company shares are down 5 per cent to trade at 38 cents
HGL (HNG) is planning to raise $15 million through a private and conditional placement.
The investment business entered a trading halt earlier this week regarding a capital raise but hadn’t released any details about how much or for what it’s raising the money for.
HGL will issue 22.5 million shares to institutional and sophisticated investors through a private placement to raise $7.4 million.
Members of the board and investment team subscribed for around $2.5 million of the private placement.
The other $7.6 million will be raised through a conditional placement of 23 million shares. This placement must first receive shareholder approval which will be sought at the annual general meeting to be held in February 2022.
Each share across both placements will be issued at 33 cents, which represents a 17.5 per cent discount to the last closing price of 40 cents on November 23.
HGL plans to use the money to support its balance sheet as it progresses investment initiatives.
Company shares were down 5 per cent to trade at 38 cents at 2:17 pm AEDT.