27/07/2015 - 13:58

Atrum shares plunge on discounted offer

27/07/2015 - 13:58

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Atrum Coal shares almost halved in price after the company announced a heavily discounted entitlement offer to raise $5 million.

Atrum shares plunge on discounted offer
Atrum's Groundhog project

Atrum Coal shares almost halved in price after the company announced a heavily discounted entitlement offer to raise $5 million.

The one-for-17 non-renounceable, pro rata entitlement offer at 50 cents a share is fully underwritten by Blackwood Capital.

The price is 58 per cent lower than the $1.19 a share price when they last traded on June 3.

The entitlement offer also includes a free option for every two new shares, exercisable for 80 cents a share.

An additional $1 million may be raised if the offer is oversubscribed or receives third-party interest.

Atrum shares, which had been suspended since June 4, fell sharply after news of the offer, dropping 45 per cent to a price of 65 cents a share at 1330 AWST.

Capital raised by the offer is intended to fund the continued business development of its Groundhog anthracite project in Canada.

Atrum’s largest shareholder Lenark, which is associated with Atrum executive chair James Chisholm, has committed to its full entitlement under the offer.

The offer will open on August 6 and closes August 17.

 

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