Aspen securities issue closes 95% accepted

Perth-based property developer Aspen Group Ltd has raised $54.5 million through a securities issue, which closed today with 95 per cent of the issue accepted.

The full text of a company announcement is pasted below

Aspen Group is pleased to announce the Entitlement Issue, which opened on Tuesday, 6 March 2007, has now closed with acceptances totaling 95.7% of the issue.

The issue has raised $54.5 million through the issue of approximately 30.3 million New Stapled Securities at $1.80 each. The issue provided all Security holders with an opportunity to participate in the growth of Aspen Group and has resulted in a very strong level of support. Allotment is to be completed on Thursday, 29 March 2007 with trading of the New Stapled Securities to begin on Friday, 30 March 2007.

The shortfall of 1,307,654 Stapled Securities will be placed by the underwriter Euroz Securities Limited, with settlement of the shortfall to be completed on Wednesday, 4 April 2007.

Managing Director Angelo Del Borrello said the Aspen Group Board was delighted with the response from Security holders.

"We see the very high level of acceptances as an endorsement by Security holders of the new funds management initiatives undertaken by Aspen and a reflection of the Group's strong financial performance over a number of years" he said.

The proceeds of the Entitlement Issue will be used to provide both equity and short-term debt to the newly established funds management vehicles, Aspen Development Fund No.1 and Fern Bay Seaside Village Limited, while further reducing the Group's ongoing gearing position.