- Investment company HGL (HNG) will raise up to $4.1 million in a private placement and entitlement offer to strengthen its balance sheet
- Under the placement, HGL will issue over 11.3 million shares at 12.5 cents
- While the 1-for-4 pro-rata entitlement offer includes over 21.7 million shares at the same price as the placement
- Under the entitlement offer, two existing substantial shareholder groups will exercise 100 per cent of their pro-rata rights
- Additionally, HGL has appointed Sandy Beard as Chairman
- Until last year, Sandy was the Managing Director of CVC, where he helped build a highly successful investment business for 15 years
- Sandy has also committed to invest between $1.2 and $1.5 million in the capital raise
- HGL is still in a trading halt and shares last traded at 15.5 cents on October 20
Investment company HGL (HNG) is aiming to raise up to $4.1 million in a private placement and entitlement offer.
The funds will be used to strengthen the company’s balance sheet and will assist further growth.
Private placement
Under the placement, HGL will issue over 11.3 million shares at 12.5 cents per share to raise $1.418 million.
Entitlement offer
The entitlement offer is a 1-for-4 pro-rata non-renounceable offer which includes over 21.7 million shares at 12.5 cents per share. HGL aims to raise up to $2.7.18 million through the offer.
The offer will include two components – an accelerated and retail entitlement offer component. The accelerated entitlement offer will be offered to eligible institutional and sophisticated investors. This includes certain new investors and the two existing substantial shareholder groups who have been invited to participate.
The two existing shareholder groups will be using 100 per cent of their pro-rata rights under the entitlement offer.
While the retail offer will be for the remaining eligible shareholders.
Wentworth securities is the Lead Manager to the capital rasing.
Chairman appointment
HGL has appointed Sandy Beard as Chairman of the company.
Until last year, Sandy was the Managing Director of CVC (CVC), where he helped build a highly successful investment business for 15 years.
Currently, Sandy is on the board for a number of ASX-listed companies, including Probiotec, Centrepoint Alliance and Pure Foods Tasmania.
“Today’s announcement on new capital initiatives marks an important milestone for HGL in its 116-year history, seeing the introduction of new strategic investors committed to the future growth of HGL and its equity and skills model,” Chair Kevin Eley said.
“We are also delighted to invite someone of the calibre of Sandy Beard to the board of HGL, who we expect will bring much by way of experience in a similar business as well as through potential new opportunities,” he added.
Sandy said he is excited to join a business he has been watching for years.
“I am excited to be joining HGL at this time, a business that I have watched over many years while I was at CVC, and believe I can bring much to assist the company in restoring and building shareholder value,” he concluded.
Additionally, Sandy has committed to invest between $1.2 million and $1.5 million through the capital raise. He’ll be issued eight million options.
The company has entered into a double trading halt today, meaning shares will be paused until Tuesday (October 27) or when it announces the completion of the raise.
HGL last traded at 15.5 cents on October 20.