ASX Capital Raise Roundup: Keep calm (through lockdowns) and carry on!

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ASX Capital Raise Roundup is a fortnightly look at ASX capital raisings.

This extended Australian lockdown, affecting ~60% of the population, certainly is a bruising time for the industries hardest hit. 

As an example, health club operator Viva Leisure Limited (ASX:VVA) raising $11.7mn at $1.55 which will be used towards working capital and also allow for site acquisition opportunities.

At the same time, as the global economy emerges from the pandemic, companies are carrying forward with innovation strategies in new industries. 

And some big thematics are emerging with the likes of artificial intelligence, clean power, wellness, and hybrid working lifestyles.

Companies such as data play Kyckr Limited (ASX:KYK) with their proprietary software helping reduce regulatory costs are raising funds to further bolster their business.

Additionally, we spent time recently with Houston We Have Limited (ASX:HWH).

MD Elizabeth Whitelock discussed their usage of Artificial Intelligence (AI) to help healthcare insurers optimize their customer bases. 

In the electric power sector, Australian Vanadium Limited (ASX:AVL) and Redflow Limited (ASX:RFX) are also using funds from recent Capital Raises to advance their respective activities which will improve the global environment. 

In summation, despite lockdowns bringing Australian physical movement to a harsh halt, business keeps marching forward.

Carry-on!

Placements this week

180 Markets was thrilled to have acted as lead manager on an $8.7m capital raise for Australian Vanadium Limited (ASX:AVL). What was even more pleasing was the raise was so heavily oversubscribed and included an impressive cornerstone book.

New and existing institutional and sophisticated investors massively oversubscribed for the placement of 348 million shares priced at 2.5c each, which represents an 11% discount to the 15-day volume weighted average price of 2.8c. One free attaching listed option with an exercise price of 2.5c and expiring on 18 December 2022 will be issued for every share subscribed. The strong response is likely due at least in part to projections that the vanadium market could be in deficit until 2024.

Shaun Factor, Co-founder of 180 Markets said: “Every time we lead a raise, we lead the cornerstone book so we are investing alongside all of our investors.”

“The 180 Markets team has been working tirelessly, adding quality investors both local and overseas so we can do these bigger raises. We reached a few records of our own on raise day on Friday.”

“We had the most ever amount of investors bid into a single book (107). We had the biggest amount of total bids ($15m). We had a record sign up for a day (not sure exact number) and we thank AVL for helping us with that side of the raise. It has been great working with Les and Vincent and the AVL team.”

Bigtincan Holdings Limited (ASX:BTH) rattled the can this week and has successfully raise $79.4m. As well as this they will offer shareholders a 1 for 4 non-renounceable entitlement offer. The shares are being offered at $1.05 which is a massive discount to the current price of $1.46 per share. Bigtincan released their results with the capital raise which has defiantly impressed the market. The company now has 1000+ current deployments of licences of which 40 are in the fortune 500. Bigtincan has achieve $53.1m in annualised revenue, surpassing previous guidance and representing a 48% year-on-year ARR growth rate.

Alice Queen Limited (ASX:AQX) has raised $1.5m through an oversubscribed placement at 1.1c per share. Major shareholder Chris Morris, existing shareholders, as well as new institutional and sophisticated investors, participated in the raise. Funds will be used to finalise the Horn Island Scoping Study, accelerate exploration activities and provide working capital flexibility. For every 2 shares subscribed in the placement, the company will issue a free attaching option, exercisable at 3c with a 2-year expiry.

180 Markets was pleased to receive an allocation for more than half of the raise and we thank Henslow for the great work on the placement.

Tempest Minerals Limited (ASX:TEM) has completed a very small placement of $391,000 and will conduct a 1 for 4 rights issue to raise a further $1.25m at 1.7c per share. Investors in both the placement and entitlement issue will receive 1 attaching option for every 3 shares subscribed, with an exercise price of 3c and an 18-month expiry.

Tempest’s Managing Director, Don Smith commented: “It is pleasing to receive a very positive response from high net worth, sophisticated and professional investors who see the huge potential at our Yalgoo and Mount Magnet project areas.”

We consider our properties to be an enviable portfolio, situated amongst a number of tier-1 iron ore, gold and polymetallic deposits such as the nearby Golden Grove VMS camp, Silver Lake’s high grade Deflector and Rothsay gold operations and the Karara and Mt Gibson iron mines to mention a few.

“We are excited to be quickly approaching drilling at our Euro Project, and then plan to step straight into drilling at the nearby Meleya Project in Q4, along strike of Golden Grove where we have already identified numerous drill targets based upon strong geophysical and geochemical signatures.”

The funds raised will be applied towards ongoing exploration activities at the Company’s Western Australian exploration portfolio centred around the Yalgoo and Mount Magnet regions and for working capital.

Viva Leisure Limited (ASX:VVA) has raised $11.7m through a successful institutional placement. Funds will be used to strengthen the company’s balance sheet and support acquisitive growth. The placement was priced at $1.55 per share which represented a 9.4% discount to the last closing price of $1.71 on August 24^th.

Petra Capital acted as sole lead manager to the raise. Viva Leisure operates health clubs within the health and leisure industry. Viva Leisure’s mission is to connect health and fitness to as many people as possible and aims to provide its members with affordable, accessible and awesome facilities.

Norwest Energy NL (ASX:NWE) is currently in a trading halt for a $2m placement. The raise is priced at 0.8c per share which represents a discount of 20% to the last closing price. The funds from the raise will be used on production testing at the Lockyer Deep-1 gas exploration well, which contingent upon encouraging results from wireline logging of primary reservoir objectives. Funds will also be used on a 2D seismic survey planning, acquisition, processing and interpretation costs – survey design to mature additional gas exploration leads in south of permits Ep368 and EP426.

180 Markets was thrilled to be one of the few brokers assisting Norwest Energy on the capital raise. We had to close the raise after just 25 minutes!! due to excessive demand.

Thinking about taking the IPO leap?

Hit the bourse this week

The fun is back in the IPO market! While only two companies hit the bourse this week, Kuniko Limited (ASX:KNI) provided enough activity for all interested participants and onlookers. The 20c IPO burst onto the scenes on Tuesday, quadrupling its IPO price and trading at 80c per share.

However, what was to come next was simply amazing… On Thursday the company attracted the attention of many speculators hitting an intraday high of $3.60 per share. This represented an amazing 18x return for those that got cheap 20c shares.

Kuniko was a spinoff of Vulcan Energy Resources Limited (ASX:VUL). While most shares were not available to new investors, rather they were given to Vulcan shareholders who would be counting their lucky stars. Just over a year ago, Vulcan was trading at 30c per share on the ASX. It is currently trading at $13.00 per share. Well done to all shareholders who have jumped on this lucky ride.

Also listing this week was Clarity Pharmaceuticals LTD (ASX:CU6). In a much more boring debut compared to KNI, the shares have traded around its issue price of $1.40 per share.

Next week there are another 2-3 companies listing including Koonenberry Gold Limited (ASX:KNB) and Ballymore Resources Limited (ASX:BMR).

Expected to hit the bourse next week

180 Markets’ recent performers

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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