- On January 14, 2020, LawFinance (LAW) announced a partially underwritten 1 for 1 entitlement offer to raise more than $35 million
- Eligible shareholders will be able to subscribe for one new fully paid ordinary share for every share held by the shareholder at an issue price of $0.064 per share
- The entitlement offer will reduce LawFinance’s debt and improve its balance sheet
- LawFinance is currently up 4.29 per cent with shares trading for 7.3 cents apiece
On January 14, 2020, LawFinance (LAW) announced a partially underwritten 1 for 1 non-renounceable entitlement offer to raise more than $35 million.
Eligible shareholders will be invited to subscribe for one new fully paid ordinary share in the company for every one share held by the shareholder at an issue price of $0.064 per share.
A total of $35,952,670 will be raised with the money to be used to reduce existing debt of at least $12.5 million, provide capital for new funding, and pay the costs of the entitlement offer.
The entitlement offer will reduce LawFinance’s debt and improve its balance sheet.
This entitlement offer forms part of a series of transactions to enhance LawFinance’s balance sheet, reduce costs, and fund growth in its U.S. medical funding business, National Health Finance (NHF).
On December 24, LawFinance undertook a $5 million equity placement with existing and new sophisticated investors with shares priced at $0.064.
Funds raised by the placement will be used for working capital purposes.
In addition to the placement and entitlement offer, the company announced it would also undertake transactions to covert debt into debt and equity instruments.
This includes US$3.4 million (AUD$4.9 million) existing convertible bonds to be converted to equity at $0.064 per share and US$17.3 million (AUD$25 million) of existing subordinated debt converted to a new capitalising converting note with a $0.10 per share conversion option.
Finally, US$22.1 million (AUD$32 million) existing NHF Vendor loans converting to three seperate options.
The entitlement offer will be partially underwritten for $20 million by Lucerne Investment Partners.
As a result of the entitlement offer, the number of shares in LawFinance is projected to increase from 561,760,467 shares to 1,123,520,934 shares.
The shares issued under the entitlement offer will be fully paid and will rank equally with the company’s other fully paid ordinary shares on issue.
LawFinance is currently up 4.29 per cent with shares trading for 7.3 cents apiece at 2:06 pm AEDT.