Salt Lake Potash (AIM:SO4) has completed the retail component of the 1 for 3.2 offer, which forms part of its A$98.5m equity raise, with eligible shareholders applying for around A$11m worth of new fully paid shares in line with their entitlements and new shares under the Retail Shortfall Facility.
The retail offer forms part of the fully underwritten A$98.5 equity raising which closed on Tuesday with the dual-listed firm noting the response represented a take up rate of approximately 40%.
The news follows strong support for the institutional component of the entitlement offer and placement which raised approximately A$71 million at A$0.50 per new ordinary share.
New shares will be issued under the retail entitlement offer on Tuesday 1 September 2020 and are expected to begin trading on the ASX the following day, the group told investors.
Shares in Salt Lake Potash have increased from lows of 22p in the past three months to recent highs of 35p. Shares opened this morning at 27.50p.
The new shares to be issued under the retail entitlement offer will rank equally with existing ordinary shares on issue.
Australian-based firm, Euroz Securities Limited, and Canadian firm Canaccord Genuity acted as joint lead managers, joint underwriters and bookrunners to the group’s equity raising.
The equity raising, alongside the previously announced $203m debt financing package, means SO4 is fully funded to deliver the Lake Way project in Western Australia on schedule.
"Completion of this financing package is a major milestone in SO4's evolution,” said Tony Swiericzuk, Chief Executive Officer of Salt Lake Potash in a previous statement.
The funds will enable the group to finalise funding and deliver its Lake Way Sulphate of Potash project on schedule with first production expected in the March quarter 2021.
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