CMA Corporation has raised $25 million through a share purchase plan (SPP) and a placement to institutional investors which the metal recycling group will use for working capital and to support the continued growth of its operations.
CMA Corporation has raised $25 million through a share purchase plan (SPP) and a placement to institutional investors which the metal recycling group will use for working capital and to support the continued growth of its operations.
About $8 million worth of fully paid ordinary shares were received from eligible shareholders who participated in the SPP while a further $12 million was raised from institutional and domestic investors.
In addition, CMA has made a $5 million placement of shares to institutional and professional investors.
CMA managing director, Doug Rowe has subscribed for $1.771 million worth of additional shares in this raising, which are subject to shareholder approval.
"The very strong support from existing and new investors indicates they appreciated the company's efforts to manage its way through the global downturn and understand that CMA is now in a strong position to take advantage of improving economic conditions," Mr Rowe in a statement.
Full announcement below:
CMA raises $25 million
CMA Corporation Limited (ASX: CMV) is pleased to announce that it has raised $25 million through the recently completed Share Purchase Plan (SPP) and a placement to institutional and professional investors (Placement).
The SPP closed on 8 October 2009 and allowed eligible shareholders to subscribe for up to $15,000 worth of CMA shares at 10 cents per share.
Applications amounting to approximately A$8.0 million worth of fully paid ordinary shares were received from eligible shareholders who participated in the SPP.
Due to the significant demand from local and offshore investors, BBY Limited, as Lead Manager and Underwriter, has increased its underwriting commitment by A$5 million to A$20 million, meaning a further A$12.0 million was raised from institutional and domestic investors.
In addition, CMA has made a A$5 million Placement of shares to institutional and professional investors. BBY Limited was also Lead Manager to the placement.
Shares issued under the A$5 million Placement are also priced at 10 cents per share.
CMA Managing Director Doug Rowe has subscribed for A$1.771 million worth of additional CMA shares in this raising. This will be subject to the approval of shareholders at the forthcoming AGM.
The issue of all shares accepted under the Placement and a proportion of the shortfall shares to be taken up by BBY Limited as the Underwriter under the SPP will exceed the placement capacity of CMA by up to approximately 6,320,000 shares.
Accordingly, this number of shares cannot be issued without shareholder approval at a general meeting.
Mr Rowe thanked CMA shareholders for their participation in the SPP along with new institutional investors who participated in the Placement.
"The very strong support from existing and new investors indicates they appreciated the company's efforts to manage its way through the global downturn and understand that CMA is now in a strong position to take advantage of improving economic conditions," said Mr Rowe.
"At CMA, we have remained focussed on controlling our costs while at the same time investing strategically to improve our position and capacity in our key markets.
"The increased capital available to us will be used for working capital and to support the continued growth of the Company's operations.
"Demand for our products and services has started to improve, particularly in metal recycling where we are beginning to see increased demand from customers in our key markets.
