- Tyre processor Pearl Global (PG1) has received commitments to raise up to $6.5 million, which it will use for its Stapylton facility in Queensland
- Of the $6.5 million, $5 million will be raised through the issue of 55.56 million shares to investors at 9 cents each
- Subject to shareholder approval, Pearl Global’s cornerstone shareholder will subscribe for an additional $1.5 million to maintain their current holding
- As stated before, Pearl Global will use the funds to expand its facility in Stapylton, Queensland and construct needed equipment
- The company will construct shredding and crumbing equipment to increase production volumes and revenues and establish in-house maintenance to reduce costs
- Pearl Global is down a slight 1.06 per cent and shares are trading for 9.3 cents nearing market close
Pearl Global (PG1) has received commitments to raise up to $6.5 million which it will use for its Stapylton facility.
The tyre processor entered a trading halt on October 30, but did not disclose how much it intended to raise or what the funds will be used for.
Of the $6.5 million, $5 million will be raised through the issue of 55.56 million fully paid ordinary shares to institutional, sophisticated and professional investors at 9 cents each.
Shares are expected to settle on November 6 and begin trading on November 9.
Subject to shareholder approval, Pearl Global’s cornerstone shareholder, ROC Asset Management, will subscribe for an additional $1.5 million to maintain their current holding.
Approval will be sought at the general meeting scheduled for mid-December and, if received, shares will be issued the following week.
Pearl Global will use the funds to expand its facility in Stapylton, Queensland and construct needed equipment.
The company will construct shredding and crumbing equipment to increase production volumes and revenues, and establish in-house maintenance to reduce costs.
Money will also go towards costs associated with production and the placement, as well as general working capital.
Pearl Global is down a slight 1.06 per cent and shares are trading for 9.3 cents at 3:36 pm AEDT.