- Craft beer company United Malt (UMG) has successfully completed a $140 million placement to strengthen its balance sheet
- Approximately 36.8 million shares were issued to institutional investors at a price of $3.80 per share
- As well as strengthening its balance sheet, the money will be used to provide operational and financial flexibility
- United Malt is also offering all eligible shareholders the opportunity to take part in a share purchase plan to raise an additional $25 million
- Shareholders will be able to purchase up to $30,000 worth of shares
- United Malt is down 7.69 per cent on the market this morning and shares are trading for $3.96 each
Craft beer company United Malt (UMG) has successfully completed a $140 million placement to strengthen its balance sheet.
Approximately 36.8 million shares were issued to institutional investors at a price of $3.80 per share.
This price represents an 11.4 per cent discount to the company’s last trading price on May 13 of $4.29.
“We are delighted with the strong support received for the placement from both existing institutional shareholders and new domestic and offshore investors,” Managing Director Mark Palmquist commented.
“We are confident that completing the placement today was a prudent and pre-emptive step to ensure we are well placed to navigate the current period of uncertainty while having the ability to continued disciplined investment opportunities we see in the business,” he added.
United Malt is also offering all eligible shareholders the opportunity to take part in a share purchase plan to raise an additional $25 million.
Shareholders will be able to purchase up to $30,000 worth of shares and the company has the right to scale back applications if the total amount exceeds $25 million, or if a decision is made to raise more.
The share purchase plan will open on May 28 and close on June 18. Shares will then be allocated on June 29 and can begin trading on the market on June 30.
Money from both the placement and share purchase plan will be used to strengthen United Malt’s balance sheet, and provide operational and financial flexibility.
United Malt is down 7.69 per cent on the market this morning and shares are trading for $3.96 each at 10:51 am AEST.