- Maas Group Holdings (MGH) is looking to raise up to $90 million through a placement and share purchase plan
- All up, 16.4 million new shares will be issued at $5.50 per share which marks a 1.8 per cent discount to the last closing price of $5.60 on June 30
- The placement will be split into a $46 million institutional placement and a $29 million conditional placement which is subject to shareholder approval
- The other $15 million will be raised through a share purchase plan whereby eligible shareholders may subscribe for up to $30,000 worth of shares
- The funds will go towards strengthening MGH’s financial position, potential acquisitions and reducing debt
- MGH remains in the trading halt and shares last traded at $5.60 on June 30
Soon after entering a trading halt, Maas Group Holdings (MGH) is launching a $90 million capital raise.
The capital raise will include an institutional placement, a conditional placement and a share purchase plan.
All up, 16.4 million new shares will be issued at $5.50 per share. The issue price represents a 1.8 per cent discount to the last closing price of $5.60 on June 30 and a 3.1 per cent discount to the volume-weighted average price since June 28.
The institutional placement is fully underwritten and will raise $46 million.
The conditional placement will be open to certain MGH directors and other founding shareholders and executives of the company. This portion of the $75 million placement is subject to shareholders and, if approved, it will raise $29 million on a non-underwritten basis.
Importantly, company Managing Director and CEO, Wes Maas, has committed to raise $25 million in the conditional placement.
The diversified industrial company will use the funds to enhance its financial capacity to fund growth and potential acquisitions, as well as to reduce debt.
Once the placement is completed, MGH expects to have pro forma liquidity of about $206 million.
The placement shares are expected to settle on July 7 and begin trading on the following day.
In addition, Maas Group will launch a share purchase plan (SPP) to raise another $15 million.
Eligible shareholders may subscribe for up to $30,000 worth of shares at the same price as the placement.
The money from the share purchase plan will go towards further reducing debt and increasing cash reserves.
The SPP will be open from July 8 until July 22 and the new shares will be allocated and commence trading on July 29.
MGH remains in the trading halt and shares last traded at $5.60 on June 30.