10/10/2007 - 15:27

XRF to raise $1.1m in rights issue

10/10/2007 - 15:27

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Midvale-based scientific instrument manufacturer XRF Scientific Ltd has announced plans to raise over $1.1 million through the issue of 23.7 million shares at five cents each to shareholders on a one for three basis.

XRF to raise $1.1m in rights issue

Midvale-based scientific instrument manufacturer XRF Scientific Ltd has announced plans to raise over $1.1 million through the issue of 23.7 million shares at five cents each to shareholders on a one for three basis.

The offer, which is fully underwritten by Novus Capital Ltd, will provide the company with additional working capital.

 

 

The full text of an XRF announcement is pasted below

XRF Scientific Ltd ("XRF Scientific" or the "Company") is making a pro-rata non-renounceable rights issue to shareholders who are registered at 5.00pm WST on 18 October 2007 ("Record Date") of approximately 23,652,921 fully paid ordinary shares at an issue price of $0.05 each ("Shares") to raise approximately $1,182,646 (before expenses of the issue) ("Rights Issue"). The Shares will be offered on the basis of one Share for every three shares held. The offer is fully underwritten by Novus Capital Limited ("Novus Capital" or the "Underwriter").

The Rights Issue is being made without a disclosure document, pursuant to the exemption granted in section 708AA of the Corporations Act 2001 (Cth) (the "Act"). A rights issue notice pursuant to section 708AA of the Act
was lodged with ASX on 9 October 2007.

The Shares will be offered under the Rights Issue at an issue price of $0.05 per Share, which represents a discount of approximately 66% to the closing price of ordinary shares on 8 October 2007, the last full trading day prior to the announcement on ASX of the material terms of the Rights Issue (including the issue price).

The funds raised are to provide the Company with additional working capital and to pay the cost of the Rights Issue. The Shares allotted pursuant to the Rights Issue will rank equally with all existing ordinary shares from their date of issue.

The Rights Issue is being made to all registered shareholders as at close of business on 18 October 2007 ("Record Date") whose registered address on XRF Scientifc's share register is in Australia or New Zealand.

Shareholders on the Record Date whose registered address on the XRF Scientific's share register is outside Australia or New Zealand ("Non-Qualifying Foreign Holders") will not be eligible to participate in the Rights Issue.

The decision has been made by the XRF Scientific taking into account the small number of Non-Qualifying Foreign Holders in each jurisdiction, the small number and value of Shares which would otherwise have been offered to those Non-Qualifying Foreign Holders, and the costs of complying with the legal and regulatory requirements in those jurisdictions.

It has been determined that you are a Non-Qualifying Foreign Holder because your registered address on XRF Scientific's share register is outside Australia and New Zealand and accordingly we regret that you will not be eligible to participate in the Rights Issue.

XRF Scientific lodged a Rights Issue notice containing the full details of the Rights Issue with ASX on 9 October 2007, including the Rights Issue timetable. The Rights Issue notice is available on the ASX website.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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