Balcatta-based technology stock Orbital Corporation Ltd has announced plans to raise a minimum of $2 million through a share purchase plan to existing shareholders to raise money for working capital.
The company will issue shares at 15c, in a deal to be underwritten by Patersons Securities Ltd which follows the successful raising of $4 million through a share placement earlier this month.
The deal will close on December 7.
The full text of a company announcement is pasted below
Orbital Corporation Ltd announced to the Australian Stock Exchange on 14 November 2006 it had undertaken a share placement which raised $4 million for working capital requirements.
The Board of Directors of Orbital is now pleased to provide an opportunity for all eligible shareholders to participate in the capital raising initiatives of Orbital through a Share Purchase Plan.
Registered holders of Orbital shares as at 5.00 pm WST on 21 November 2006 with addresses in either Australia or New Zealand are eligible to participate in the SPP.
The SPP is seeking to raise a minimum of $2 million before expenses by offering shares at an issue price of 15c per share. If the total of all applications received under the SPP is less than $2 million, or 13.3 million shares, then Patersons Securities Ltd will apply for the balance.
The price per share under the recent placement was 15c and eligible shareholders are now being offered the opportunity to participate in the SPP at the same price. The price of 15c per share represents a discount of approximately:
- 21.7 per cent to the daily volume weighted average share price of shares traded over the five ASX trading days; and
- 4.2 per cent to the VWAP of shares traded in the month,
before the placement and SPP were announced.
Eligible shareholders may apply for a parcel of up to $5,000 worth of shares without incurring any brokerage or other transaction costs. Applications will be rounded down to the nearest whole number of shares. So, for the maximum subscription of $5,000 per eligible shareholder, applicants would be allotted 33,333 Orbital shares.
The Underwriter has underwritten the SPP to $2 million. In the event of demand in excess of this amount, Orbital may elect to accept additional SPP applications, or alternatively, scale back applications.
The SPP offer will close at 5.00 pm WDST on 7 December 2006.
