Sun Resources to raise $2m in entitlements issue

By Edited announcement
Thursday, 18 October, 2007 - 12:09
Category: 
Financial Services

Balcatta based oil and gas company Sun Resources NL aims to raise just under $2 million through a pro-rata non-renounceable entitlement issue of 28.5 million shares at 7 cents each, issued on a basis of one share for every six held.

The Entitlement Issue is fully underwritten by Hartleys Ltd for a fee of 6 per cent of the total amount to be raised.

In addition, all of the Directors have agreed to take up their full entitlement under the Entitlement Issue and Dr B L Farrell and Mr A P Woods have agreed to sub-underwrite a further 220,536 and 1,000,000 shares respectively of any Entitlement Issue shortfall for a fee of 1 per cent of their respective firm and sub-underwritten amounts.

 

 

The full text of a company announcement is pasted below

Sun Resources NL ("Sun" or the "Company") advises it is making a fully underwritten pro-rata nonrenounceable entitlement issue to shareholders who are registered at 5.00pm WST on 26 October 2007 ("Record Date") of approximately 28,459,298 shares at an issue price of $0.07 each to raise approximately $1,992,151 (before expenses of the issue) ("Entitlement Issue"). The shares will be offered on the basis of 1 new share for every 6 shares held on the Record Date.

The Company is making the Entitlement Issue without a disclosure document, pursuant to the exemption granted in section 708AA of the Corporations Act 2001 (Cth) (the "Act").

The Company gives the following information under section 708AA of the Act:-

  • The Company will offer the shares for the issue without disclosure to investors under Part 6D.2 of the Act;
  • The Company is providing this notice under paragraph 2(f) of section 708AA of the Act;
  • As at the date of this notice, the Company has complied with:-
  • The provisions of Chapter 2M of the Act as they apply to the Company; and
  • Section 674 of the Act;
  • As at the date of this notice there is no excluded information that is required to be set out in this notice by section 708AA(7)(d) of the Act;
  • Under the Entitlement Issue, approximately 28,459,298 shares (subject to rounding) will be issued (this number may have to be increased by up to 3,750,000 shares if existing option holders exercise their options prior to the Record Date). The shares will be issued for $0.07 each.

    • The Entitlement Issue is fully underwritten by Hartleys Limited (or the underwriter) for a fee of 6% of the total amount to be raised. In addition, all of the Directors have agreed to take up their full entitlement under the Entitlement Issue and Dr B L Farrell and Mr A P Woods have agreed to sub-underwrite a further 220,536 and 1,000,000 shares respectively of any Entitlement Issue shortfall for a fee of 1% of their respective firm and sub-underwritten amounts.

    Upon completion of the Entitlement Issue, and assuming no existing option holders exercise their options, the issued capital of the Company will comprise approximately 199,215,083 shares.

    If all shareholders take up their entitlements under the Entitlement Issue, the Entitlement Issue will have no effect on the control of the Company. If no shareholders take up their entitlements under the Entitlement Issue, the underwriter Hartleys Limited together with its sub-underwriters would acquire up to 28,459,298 shares, representing up to 14% of the Company's voting shares.

    Following this notice is an Appendix 3B - New Issue Announcement, applying for quotation of the shares referred to above, proposed to be issued.