Firm: upsized deal garners strong support from strategic shareholders
By Susanna Moon
Chicago, Dec. 14 - Hot Chili Ltd. said it completed a private placement of stock for A$22.3 million, which had been slated to raise about A$8 million when announced this summer.
The placement has been strongly supported by four of the company's top five strategic shareholders, namely Taurus Funds Management Pty Ltd., Panoramic Resources Ltd., Rex Harbour and Compania de Aceros del Pacifico CAP, who have invested A$16.85 million.
The placement is being managed by Bell Potter Securities.
The company sold about 37.1 million shares at A$0.60 apiece, which is a 9.09% discount to the July 25 closing share price of A$0.66. The company had planned to sell about 13.33 million shares.
Investors will also receive an attaching A$0.75 one-year unlisted option for every three shares subscribed.
Hot Chili said on July 26 that it raised A$4 million in a private placement of stock with Panoramic and Taurus and would raise another A$4 million in the deal. Each of the investors was to buy 6,666,667 shares.
Proceeds will be used to complete existing work programs and begin economic studies.
Hot Chili is a Perth, Australia-based uranium, copper and gold exploration company.
| Issuer: | Hot Chili Ltd.
|
| Issue: | Shares
|
| Amount: | A$22.3 million
|
| Shares: | 37.1 million shares
|
| Price: | A$0.60
|
| Options: | One for every three shares
|
| Option price: | A$0.75
|
| Option maturity: | One year
|
| Investors: | Taurus Funds Management Pty Ltd., Panoramic Resources Ltd., Rex Harbour and Compania de Aceros del Pacifico CAP for A$16.85 million
|
| Settlement date: | July 26 (for A$4 million), Aug. 12 (for A$4 million), Dec. 14
|
| Stock symbol: | Australia: HCH
|
| Stock price: | A$0.655 at close July 26
|
| Market capitalization: | A$93.54 million
|
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