PS&C Ltd (ASX: PSZ) announced that it has successfully raised $5.5 million through a placement of 27.5 million new fully paid ordinary shares at $0.20 per share. Predominantly, the shares were issued to new institutional and sophisticated investors, with PS&C Management participating in the Placement (subject to shareholder approval), demonstrating their commitment to the strategy and vision of the Company.
The Placement will be made in two tranches with the first tranche of 15,978,848 shares to be placed under the Company’s placement capacity in accordance with ASX Listing Rule 7.1, and the second tranche of 11,521,152 shares to be placed subject to shareholder approval. The shares issued under the Institutional Placement will rank equally with existing shares on issue.
The Company also announced that it is offering a non-underwritten Share Purchase Plan (the SPP) to eligible shareholders.
Each eligible PS&C shareholder at 7.00pm (AEST) on 28 November 2017 will have the opportunity to subscribe for up to AUD$15,000 worth of new PS&C shares. This can be done in tranches of either $1,000, $2,000, $5,000, $10,000 or $15,000.
The issue price under the SPP will be $0.20 per share, reflecting the issue price of the Institutional Placement. The SPP aims to raise approximately $1 million and is not underwritten.
The total amount to be raised under the SPP is subject to a $1 million cap. If demand exceeds the cap, the Company intends to scale back applications received from eligible shareholders. The Company may also, in its discretion, decide to increase the cap as appropriate.
The proceeds from the SPP (together with the proceeds from the Institutional Placement) will be used to pay down debt and provide working capital to enable growth.
The SPP is subject to the terms which will be set out in an SPP Offer Booklet. This will be released to the Australian Stock Exchange and despatched to eligible shareholders on or about 20th December 2017.
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