Lepidico (ASX:LPD) launches $11.71m entitlement offer

• Lepidico (LPD) launches a renounceable entitlement offer to raise about $11.71 million to fund activities at its Phase 1 project in Abu Dhabi
• Eligible shareholders will be able to subscribe for one new share at 1.8 cents for every 10 shares already held
• For every two new shares subscribed for, investors will receive one attaching option exercisable at three cents and expiring in two years
• The entitlement offer is partially underwritten to $4 million, and company directors plan to participate
• Shares in Lepidico are trading 11.4 per cent lower at 1.95 cents at 12:31 pm AEDT

Lepidico (LPD) has launched a renounceable entitlement offer to raise about $11.7 million to fund activities at its Phase 1 project in Abu Dhabi.

This includes front-end engineering and design work, lender due diligence, and the start of critical path stage two engineering, procurement and construction management (EPCM) works for both the concentrator and chemical plant.

Eligible shareholders will be able to subscribe for one new share at 1.8 cents for every 10 shares already held.

This represents an 18 per cent discount to the company’s last closing price and a 31 per cent discount to its 20-day volume-weighted share price.

For every two new shares subscribed for, investors will receive one attaching option exercisable at three cents and expiring in two years.

The entitlement offer is partially underwritten to $4 million, and company directors plan to participate.

Shares in Lepidico were trading 11.4 per cent lower at 1.95 cents at 12:31 pm AEDT.