Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) has extended the closing date for its pro-rata non-renounceable rights issue of one new share for every five shares held by eligible shareholders to Friday, December 20, 2024.
This has been done to provide extra time for eligible shareholders to take up their entitlements.
The offer price is $0.072 per share, which represents a 10% discount to the closing price of $0.08 on November 15, 2024, and between 20-23% to the 10 and 15-day VWAP, respectively as of that date, and the company is aiming to raise up to $6.08 million before costs.
Shortfall facility
The entitlement issue includes a shortfall facility under which eligible shareholders that have taken up their full entitlement under the issue can apply to take up additional new shares in excess of their pro rata entitlement.
Applications under this Top-Up facility will only be considered to the extent there is a shortfall under the entitlement issue.
Directors reserve the right to place any shortfall shares at their discretion within three months of the closing date at a price not less than the offer price.
READ: Cobalt Blue seeks up to $6.08 million in non-renounceable entitlement issue
Use of funds
Cobalt Blue intends to use the proceeds from the entitlement issue together with existing cash resources to fund the following:
- Kwinana Cobalt Refinery (KCR) work programs – including the KCR engineering program (delivered by Tetra Tech (NASDAQ:TTEK)) permitting/approvals, financing, offtake/feedstock programs, as well as legal support work;
- Broken Hill Cobalt Project (BHCP) strategic review studies;
- ReMine+ opportunities, including desktop studies and/or test work at the Broken Hill Technology Development Centre; and
- General corporate activities.
Eligible shareholders
All shareholders on the company's share register at the record date and whose registered address is in Australia and New Zealand are entitled to participate in the entitlement issue.
This issue will allow eligible shareholders to take up new shares proportional to their shareholding and mitigate the effect of dilution and eligible shareholders can choose to take up all, part or none of their entitlement.
Those who do not take up their entitlement in whole or in part will not receive any value in respect of those entitlements not taken up.
New shares issued under the entitlement issue will rank equally with the existing shares then on issue.
The entitlement issue is not underwritten and Blue Ocean Equities Pty Ltd has been appointed as lead manager to the issue.
Further details of the entitlement issue, including details on how to accept the offer and key risks associated with an investment in the company are set out in the offer booklet published on ASX on November 26, 2024.
READ: Cobalt Blue: a positive outlook after a year of progress in a challenging market