Funding
Proposed capital raising to purchase Encana’s TMS assets
You will fund the acquisition through a capital raising – what are the details?
The acquisition will be funded from existing cash on hand (A$30 million at 1 January 2017) and a placement of new shares to raise A$100 million before costs of the issue. The placement is conditional upon the conditions precedent (other than payment of the purchase price) to the acquisition being met or waived acquisition completing and approval by shareholder for the issue of shares.
The placement is a one-tranche share placement to sophisticated and professional investors of new ordinary shares at 23 cents/share. The funds will be used for the acquisition and working capital.
There will be no debt for the company resultant from this raising.
Australis will apply for ASX listing of shares at settlement. The raising will be settled shortly after EGM approving issue – subject to industry standard acquisition conditions.
A majority shareholder approval is required for the financing. We expect to hold the general meeting in mid April 2017.
Euroz Securities is the lead manager in the raising.
