- Exploration and mine site drilling services Mitchell Services (MSV) aims to raise $10.5 million
- The company will issue nearly 25 million shares for 42 cents each, a 15.15 per cent discount to the last trading price
- Under the entitlement offer, eligible shareholders will subscribe for one ordinary share for every eight Mitchell shares
- Funds raised will be used to support the funding of growth opportunties, which includes up to 12 additional drill rigs
- On the market, MSV last traded at 49.5 cents per share
Mitchell Services (MSV) is looking to raise $10.5 million through an entitlement offer.
The company will issue nearly 25 million shares for 42 cents each, a 15.15 per cent discount to the last trading price.
Under the entitlement offer, eligible shareholders will subscribe for one ordinary share for every eight Mitchell shares.
Notably, Executive Chairman Nathan Mitchell and Dream Challenge, an entity associated with Executive Director Scott Tumbridge, will take up all their entitlements.
All other directors and executive management have indicated that they will participate in the entitlement offer.
Funds raised will be used to support the funding of growth opportunties, which includes up to 12 additional drill rigs.
Over the FY22, MSV is expecting to generate revenue of between $200 and $220 million.
The company has entered into a trading halt while it completes the raise. MSV shares will be paused until Wednesday, August 18, or when it completes the raise.
On the market, MSV last traded at 49.5 cents per share.