- Jatcorp (JAT) receives binding commitments from sophisticated and professional investors to raise $4.4 million through a placement
- Around 275 million new shares will be issued at 1.6 cents and investors will also receive one free-attaching option for every one share subscribed for
- JAT is using the money for marketing, product development, research and development, working capital and repaying a loan
- In addition to the placement, Jatcorp entered a term sheet for a convertible note facility to receive an extra $3.3 million in direct funds
- Company shares end the day five per cent in the red to trade at 1.9 cents
Jatcorp (JAT) has received binding commitments to raise $4.4 million through a placement.
The consumer discretionary stock will issue 275 million fully-paid ordinary shares to sophisticated and professional investors at 1.6 cents per share.
Of the $4.4 million, $2.2 million was raised from current shareholders and associates of the company. Of that amount, Jatcorp’s largest shareholder, Gold Brick Capital, has committed to $2 million.
Upon the issue of the placement shares Gold Brick will increase its stake from 14.94 per cent to 18 per cent of the issued capital in Jatcorp.
Subject to shareholder approval, the placement investors will receive one free-attaching option for every one share subscribed for, with a strike price of 3.2 cents and an expiry date of two years from the issue date.
JAT plans to use the money raised for marketing its immunity support products, developing new products, research and development and commercialisation, working capital and repaying a loan.
In addition, the company entered a term sheet for a secured convertible note facility with SBC Global Investment Fund. JAT will receive up to an additional $3.3 million of direct funding and expects the facility to come into effect in eight to 10 weeks.
Company shares ended the day five per cent in the red to trade at 1.9 cents.