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ASX Capital Raise Roundup: Arise, Sir Lithium
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ASX Capital Raise Roundup is a fortnightly look at ASX capital raisings.
The past several months, the biggest thematic in the market was simply no true direction! This boring, listless price action often wears out inestors as opposed to scaring them.
However, the past ~10 days, we have finally seen a truly hot sector… lithium!
Indeed, this group has truly broken out with many companies’ share prices up 25%+ in a single week. What’s more, the Capital Markets activity was quick to respond.
Companies such as Core Lithium (ASX:CXO) raising ~80m and European Lithium (ASX:EUR) placing $6.95m with strong investor support. Even more impressive, share prices are rapidly re-rating to even higher levels than the pre-placement last sale.
Adding onto this thematic, we are now seeing a quick rise in a number of rare earths companies. The logic is that all of these commodities are key material inputs into electric batteries with an overwhelming amount of demand and clearly not enough supply. In conclusion, it is nice to see positive market action with the additional volatility which captures investors’ attention.
Placements this week
Core Lithium LTD (ASX:CXO) has raised $91m through a placement to domestic and global institutional investors. The raise was priced at 31c per share through Canaccord Genuity and Merrill Lynch Equities.
The placement was done at a 1% premium to the 10-day trading volume weighted average price, however it was a 13% discount to the last close prior to the trading halt.
Funds will be used for plant construction cost, Grants Open pit pre-strip costs and other mine established costs. Eligible shareholders will be able to participate in a Share Purchase Plan capped at $15m which will not be underwritten.
The price will be the same as the placement price of 31c per share.
One of the hot stocks this week has been European Lithium (ASX:EUR) . After raising $6.5m through a placement to sophisticated investors at 6.25c per share, the shares traded as high as 9.8c per share.
Each investor also received one free listed option with an exercise price of 7.5c for every two shares issued.
Funds raised will be used to fund the DFS at the companies Wolfsberg Lithium Project, for general exploration purposes and working capital.
The placement is led managed by Evolution Capital Advisors who did a great job with the post market support for this raise.
Shaun Factor, co-founder of 180 Markets said: “In what has been another successful raise by Evolution Capital Advisors, this has been their third raise for August. The company successfully raised $9m for Anteris Technologies (ASX:AVR) and issued a $20m convertible note for Magnis Energy Technologies (ASX:MNS). All their raises are trading really strongly and we at 180 Markets were lucky to be involved.”
EUR chairman Tony Sage commented: “It’s fantastic to get support from institutional investors and to also have the funds necessary to finalise the DFS. Both the drilling and metallurgical work is almost complete and the results will be available in September.”
Gladiator Resources (ASX:GLA) raised $1m at 1.25c per share to help fund proposed exploration projects of both its Tanzania Project and its existing Victorian Gold Projects.
Gladiator this week announced an acquisition of prospective Tanzanian exploration projects. It entered into a binding MOU to acquire 1,170km2 of Tanzanian tenements with a focus on gold and uranium.
Clearly the market was impressed by this as the shares almost doubled from the placement price hitting intra-day highs of 2.3c per share this week.
Great Southern Mining (ASX:GSN) has raised $2.5m through an oversubscribed placement. Funds will be used to expand the drilling program and the companies Duketon Gold Project including its Southern Star and regional targets.
The raise will be priced at 5c per share and will include a 1:4 attaching listed option.
CEO Sean Gregory commented: “The recently announced intersections at Southern Star were a fantastic start to the company’s drilling program at the company’s 100% owned Duketon Greenstone Belt Project. Drilling at a number of regional targets has been brought forward to rapidly advance exploration activities in the region and to continue to build on this success at Southern Star.
“The company has a fantastic portfolio of assets in both Western Australia and Queensland and this funding will provide the opportunity to rapidly advance each project along the exploration pipeline, creating strong news flow and discovery potential.”
Galan Lithium (ASX:GLN) has raised $50m through an institutional placement managed by Canacorrd Genuity. The raising will be priced at $1.15 per share and will be completed over two tranches.
Funds will be used for drilling activities at its Hombre Muerto West, drilling activities at Candelas and establish wellfields for production and convert existing resources to reserves.
Galan’s managing director, Juan Pablo (JP) Vargas de la Vega, commented: “We are delighted to announce the completion of the Placement which has enabled us to introduce a number of high-quality institutions to Galan’s register. This represents a significant milestone in the history of the company and the recognition from these leading investors provides significant external validation for Galan’s extensive portfolio of strategic lithium projects.
Dropsuite Limited (ASX:DSE) is currently halted for a capital raise priced at 21c per share managed by Petra Capital.
The raise has been priced at a 10% discount to the las close of 23.5c per share.
The company is aiming to raise $20m and has the ability to accept oversubscriptions. Funds will be used to accelerate the company’s acquisitive growth strategy to complement internal growth and strengthen working capital on its balance sheet.
Dropsuite is a highly saleable cloud-based software provider of in-demand data backup and archiving solutions. It has over 500,000 users across over 100 countries.
Currently it has $11m in annual reoccurring revenue with its average revenue per user $1.77.
| Company Name | ASX Code | Market Cap | Issue Price | Price as of Midday Friday | % Change from issue price to current price | Stock halted? | Sector | Industry |
|---|---|---|---|---|---|---|---|---|
| IKEGPS GROUP LIMITED (XASX:IKE) | IKE | $138M | $ 0.950 | $ 1.035 | 8.95% | Electronic Technology | Telecommunications Equipment | |
| NOVONIX LIMITED (XASX:NVX) | NVX | $1.638B | $ 2.600 | $ 4.060 | 56.15% | Producer Manufacturing | Electrical Products | |
| CORE LITHIUM LTD (XASX:CXO) | CXO | $428M | $ 0.310 | $ 0.365 | 17.74% | Non-Energy Minerals | Other Metals/Minerals | |
| EUROPEAN LITHIUM LIMITED (XASX:EUR) | EUR | $73M | $ 0.0625 | $ 0.078 | - | Non-Energy Minerals | Precious Metals | |
| GREAT SOUTHERN MINING LIMITED (XASX:GSN) | GSN | $25M | $ 0.050 | $ 0.057 | 14.00% | Non-Energy Minerals | Other Metals/Minerals | |
| GRYPHON CAPITAL INCOME TRUST (XASX:GCI) | GCI | $420M | $ 2.010 | $ 2.040 | 1.49% | Finance | Investment Managers | |
| WAM LEADERS LIMITED (XASX:WLENA) | WLE | $1.260B | $ 1.440 | $ 1.505 | 4.51% | Miscellaneous | Investment Trusts/Mutual Funds | |
| THOR MINING PLC (XLON:THR) | THR | $7M | $ 0.0123 | $ 0.014 | 13.82% | Non-Energy Minerals | Other Metals/Minerals | |
| GLADIATOR RESOURCES LIMITED (XASX:GLA) | GLA | $7.7M | $ 0.0125 | $ 0.022 | 72.00% | Non-Energy Mineral | Other Metals/Minerals | |
| GALAN LITHIUM LIMITED (XASX:GLN) | GLN | $296.8M | $ 1.150 | $ 1.210 | 5.22% | Process Industries | Chemicals: Agricultural | |
| DIMERIX LIMITED (XASX:DXB) | DXB | $296M | - | $ 0.235 | Still in Halt | Health Technology | Medical Specialties | |
| EVOLUTION MINING LIMITED (XASX:EVN) | EVN | $7.114B | - | $ 3.925 | Non-Energy Minerals | Precious Metals | ||
| DROPSUITE LIMITED (XASX:DSE) | DSE | $136M | $ 0.210 | $ 0.235 | 11.90% | Still in Halt | Non-Energy Minerals | Precious Metals |
| African Energy Resources Limited (XASX:AFR) | AFR | $15M | - | $ 0.025 | Still in Halt | Non-Energy Minerals | Other Metals/Minerals |
Thinking about taking the IPO leap?
Hit the bourse this week
In what was a very quiet week in the IPO market, we saw three new companies hit the bourse. It was pleasing to see all three new listings trade up on their first few days on the ASX.
Cannon Resources (ASX:CNR) has probably been the most successful out of the three, trading up over 50% higher than its issue price of 20c per share.
Cannon is a mineral exploration company that holds a 100% interest in its Fisher East project which comprises of 11 exploration licences in Western Australia. CNR is a subsidiary of Rox Resources Limited which trades under the ticker (ASX: RXL).
Tambourah Metals (ASX:TMB) also had a successful listing trading at 15% higher than its issue price of 20c per share. Tambourah has exploration, development and mining projects which are predominantly gold and nickel.
Finally, Cobram Estates Olives (ASX:CBO) listed and has been trading around $2 per share compared to its $1.86 IPO price. Cobram has a profitable global consumer branded platform and has invested over $200m over the past five years.
It currently is Australia’s largest vertically integrated olive grower, processor and marketer.
It is expected to be a very boring week next week with no new companies listing on the ASX.
| Company Name | ASX Code | Listing Date | Issue Price | Price as of Midday Friday | Change from issue price to current price |
|---|---|---|---|---|---|
| Cobram Estate Olives Limited | CBO | 11/8/21 | $ 1.860 | $ 2.050 | 9% |
| Cannon Resources Limited | CNR | 12/8/21 | $ 0.200 | $ 0.300 | 33% |
| Tambourah Metals Ltd | TMB | 12/8/21 | $ 0.20 | $ 0.230 | 13% |
180 Markets’ recent performers
| Company Name | ASX Code | Market Cap | Issue Price | Price Midday Friday | % Change from issue price to current price |
|---|---|---|---|---|---|
| BRYAH RESOURCES LIMITED (XASX:BYH) | BYH | $11.616M | $ 0.075 | $ 0.056 | -25.33% |
| VOLT RESOURCES LIMITED (XASX:VRC) | VRC | $83.311M | $ 0.015 | $ 0.031 | 106.67% |
| PEPINNINI MINERALS LIMITED (XASX:PNN) | PNN | $15.466M | $ 0.230 | $ 0.360 | 56.52% |
| MOUNT BURGESS MINING N.L. (XASX:MTB) | MTB | $5.314M | $ 0.008 | $ 0.007 | -12.50% |
| ALLIGATOR ENERGY LTD (XASX:AGE) | AGE | $83.581M | $ 0.007 | $ 0.028 | 300.00% |
| PNX METALS LIMITED (XASX:PNX) | PNX | $32.87M | $ 0.006 | $ 0.008 | 33.33% |
| REDSTONE RESOURCES LIMITED (XASX:RDS) | RDS | $9.347M | $ 0.012 | $ 0.012 | 0.00% |
| KORE POTASH PLC (XLON:KP2) | KP2 | $50.088M | $ 0.020 | $ 0.0145 | -27.50% |
| ECLIPSE METALS LIMITED (XASX:EPM) | EPM | $44.021M | $ 0.015 | $ 0.026 | 73.33% |
180 Markets was established by investors for investors, and has become Australia’s leading deal sharing platform, with a difference. In just 12 months, 180 Markets has established a 1800+ strong investor base that has enjoyed access over 650 placements on the ASX, including more than 30 placements where 180 Markets has been lead manager.
If you are interested in Placements, IPOs and RTOs sign up at www.180markets.com.au.
This article was developed by 180 Markets, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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