- Poseidon Nickel (POS) closes its “heavily oversubscribed” share purchase plan (SPP) after receiving valid applications for $9 million worth of shares
- The company originally sought to raise $3 million, offering eligible shareholders the opportunity to apply for $30,000 worth of shares at 3.5 cents each
- Poseidon’s board accepted two-thirds of the applications, totalling $6 million in new funds for Poseidon, taking the company’s total capital-raising proceeds to $12 million
- The funds raised will go towards the intended restart of Black Swan project and the 15,000 metre drill program at the Lake Johnston project in Western Australia
- Shares in Poseidon are up 2.78 per cent, trading at 3.7 cents as of 1:00 pm AEDT
Poseidon Nickel (POS) has closed its “heavily oversubscribed” share purchase plan (SPP) which sought to raise $3 million concurrently with its recently concluded placement.
The SPP provided eligible shareholders with the opportunity to apply for up to $30,000 worth of new shares at 3.5 cents each.
The company received valid applications totalling approximately $9 million, well in excess of the targeted raise.
The company’s board made the decision to accept two-thirds of the applications, with the issue and allotment of 171 million new shares expected on December 23.
As a result, Poseidon will conduct a scale-back of applications, on a pro-rata basis, based on amounts applied for under the SPP, rounded up to reflect a whole number of new shares to $6 million.
Managing Director Peter Harold thanked the company’s shareholders who participated in the SPP.
“We acknowledge that shareholders who subscribed may be disappointed by the scale back, however we have balanced the strong SPP applications with the foreseeable capital needs of the business in the best interests of all shareholders, hence the board’s decision to take $6 million,” Mr Harold said.
“The funds raised by the recent placement and this SPP will support the Company with its intended restart at Black Swan with final work streams underway to get to a final investment decision during the second quarter of 2023.”
Funds will also go towards Poseidon’s 15,000 metre drilling program at the Lake Johnston project in Western Australia to test the Western Ultramafic priority targets.
Shares in Poseidon were up 2.78 per cent, trading at 3.7 cents as of 1:00 pm AEDT.