Prospect reprices raising

Lithium hopeful Prospect Resources has repriced its recently announced $10 million capital raising, with last week’s slump in the stock market forcing the company to drop the proposed share price.

Perth-based Prospect had planned to raise the money at 6 cents per share, however the company said today it would reprice the raising to 5 cents.

“On February 5 and  6, the ASX 200 dropped some 4.71 per cent, as did most major markets around the world,” the company said

“These global market corrections caused a significant drop in the share price of Prospect Resources.

“As a consequence, the directors have determined to re-price the subscription price of the $10 million placement to 5 cents per share via a pro-rata issue of 35 million new shares to the placees.”

Shares in Propsect reached a peak of 7 cents on February 2 before slumping to 5 cents last week and finished down 5.7 per cent today at 4.9 cents each. 

Last week's share market fall also forced Eden Innovations to postpone its planned $6 million capital raising.