- Innovative wellness company OBJ (OBJ) is aiming to raise $4.5 million through an entitlement offer and placement
- The entitlement offer is aiming to raise over $3 million, offering shares for 10 cents each
- Under the placement, the company is aiming to raise $1.5 million, which will need shareholder approval to proceed
- Funds will be used for licencing, development and general working capital
- OBJ shares are currently suspended, las trading for 1.5 cents per share at October 28, 2019
Innovative wellness company OBJ (OBJ) is aiming to raise $4.5 million through an entitlement offer and placement for licencing, development and general working capital.
Entitlement offer
The entitlement offer is aiming to raise over $3 million.
Under this, shareholders will be offered one new share for every three shares held at 10 cents per share. Therefore, the company is aiming to issue over 30 million new shares.
Placement
OBJ is aiming to raise up to $1.5 million in a placement to sophisticated and professional investors. It aims to issue up to 15 million shares for 10 cents each.
For this placement to take place, the company will need shareholder approval. A notice of a shareholder meeting will be provided to shareholders soon.
Funds
Funds from the raise will be used for technology licencing, business development, BodyGuard go-to-market activities, device decision development and general working capital.
“This capital raising will provide OBJ with an excellent foundation to pursue its objectives,” Chairman Tony Varano said.
“In particular, it will facilitate the continued commercial rollout of Reduit, the Wellfully device business and the Bodyguard programme in FY21,” he added.
Reduit is the company’s new luxury beauty technology platform, which was launched in May.
BodyGuard is OBJ’s therapeutic unit. It develops advanced ‘direct to site of injury’ patch products for the supplement, healthcare, musculoskeletal, wellness and pain management sectors.
OBJ shares are currently suspended, with last trade for 1.5 cents per share at October 28, 2019.