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- Lepidico (LPD) closes an oversubscribed entitlement offer, raising $19 million
- The offer launched on October 10 to raise $11.7 million with eligible shareholders taking up one new share at 1.8 cents for every 10 shares held
- It received high demand with the company scaling back subscriptions and launching a placement of over 404.8 million shares to raise a further $7.2 million
- The offer funds are set towards completing phase one project FEED, lender due diligence and the start of stage two EPCM works for a concentrator and chemical plant
- Company shares are down five per cent and trading at 1.9 cents at 2:46 pm AEDT
Lepidico (LPD) has launched a placement after it closed an oversubscribed entitlement offer, raising a total of $19 million.
The offer launched on October 10 and aimed to raise $11.7 million with eligible shareholders taking up one new share at 1.8 cents for every 10 shares held.
The issue price represented a 31 per cent discount to the company’s 20-day volume-weighted average share price.
Lepidico said the offer received high demand and it had to scale back subscriptions and place a further 404.8 million shares with 202.4 million attaching options, raising an extra $7.2 million.
The funds from the offer are set towards completing phase one project front end engineering and design, lender due diligence and the start of stage two engineering, procurement and construction management works for a concentrator and chemical plant.
Meanwhile, the additional funds raised under the placement will be used to fast-track detailed design, engineering and other works for a phase one chemical plant in Abu Dhabi.
LPD also plans to use the placement funds for growth initiatives including expanding the mineral resource base at its Karibib project to support a phase two scoping study.
Company shares were down five per cent and trading at 1.9 cents at 2:46 pm AEDT.
