Perth-based plastic tie fastening company Millipede International Ltd has completed a rights issue worth $1.5 million after underwriter Novus Capital subscribed for 85 per cent of shares offered.
Millipede raised $210,000 from shareholders, who took up under 15 per cent of shares offered, with the remaining cash raised from Novus, which ignored the condition of their agreement requiring 35 per cent of shares be taken up by company shareholders.
The company raised $474,000 through a placement, issuing 15.8 million shares at 3 cents each, earlier this year.
The full text of a Millipede announcement is pasted below
The Company confirms the underwritten pro-rata non-renounceable rights issue of approximately 48,623,986 Shares at an issue price of $0.03 each on the basis of 2 shares for every 5 shares held, to raise approximately $1,458,720 (before expenses of the issue) was taken up by 79 existing shareholders, to the extent of 14.85% (6,981,768 shares) of the shares offered.
The underwriter, Novus Capital Limited, has agreed to waive condition 2.4(f) of the Underwriting Agreement, requiring take up of at least 35% by existing shareholders, and has subscribed for the shortfall of 41,642,232 shares at $0.03 per share, raising a further $1,249,267.
