13/02/2009 - 09:59

German firm invests $49m in CMA Corp

13/02/2009 - 09:59

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A German-based company will invest a further $49 million in waste recycling company CMA Corporation through a private placement, with shares priced at a generous premium.

A German-based company will invest a further $49 million in waste recycling company CMA Corporation through a private placement, with shares priced at a generous premium.

Scholz, which invested $11.25 million in CMA in November last year, will subscribe to 230 million shares at 21.3 cents each, a 63.8 per cent premium to CMA's closing price yesterday of 13c.

The placement will boost Scholz's interest in CMA to 42.18 per cent and is subject to shareholder approval.

CMA managing director Doug Rowe said funds raised will be used for working capital and to repay debt.

Following completion of the placement, Scholz will have the option of taking up to three board positions within CMA.

Shares in CMA were up three cents to 16c at 12:05 AEDT.

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