- Specialist financier LawFinance (LAW) has successfully tapped investors for a neat $5 million this week as part of a balance sheet restructuring
- The company placed 208 million shares at 2.5 cents each to raise the funds
- This share price represents a 24 per cent discount to LawFinance’s last closing price of 3.3 cents per share
- The company said the new money will go towards its balance sheet restructuring to position it for future growth in its core activities
- On top of the placement, LawFinance has also continued to shuffle up its leadership team, with recently-appointed CEO Daniel Kleijn to also take on the role of Managing Director
- Shares in the company fell towards the placement price today, closing 9 per cent lower at 3 cents each
LawFinance (LAW) has successfully tapped investors for a neat $5 million this week as part of a balance sheet restructuring.
The specialist financier for the legal industry launched the placement yesterday morning, under which it had the ability to place up to 220 million shares at 2.5 cents each. This price represents a 24 per cent discount to LawFinance’s last closing price of 3.3 cents per share.
The company could bring in a total $5.5 million under the placement if all shares were sold.
With $4 million underwritten by Efficient Frontier Investing, LawFinance said today it managed to place around 208 million shares to pocket the $5 million.
While the company was somewhat-vague about for what it plans to use the new money, LawFinance said the $5 million is another milestone in its balance sheet restructure, positioning it for growth in its core activities.
As payment for underwriting the deal, Efficient Frontier will be issued eight million LAW shares.
The shares bought up under the placement will be issued in two tranches, the first of which will issue 203.6 million shares on Monday, December 14. This includes the 8 million shares for Efficient Frontier.
The remaining 4.7 million shares will be issued to company directors who took part in the placement, subject to shareholder approval at the company’s next annual general meeting (AGM).
On top of the share placement, LawFinance has reshuffled its management team, with recently-appointed CEO Daniel Kleijn to also take on the role of Managing Director. Daniel will also replace former-CEO Diane Jones as a LAW board member.
Shares in LawFinance broke out of a trading halt today and sunk towards the placement price. The company closed 9.09 per cent lower at a flat 3 cents each.