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ASX Capital Raise Roundup: Welcome back, Ocsober
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ASX Capital Raise Roundup is a fortnightly look at ASX capital raisings.
October has historically proved to be one of the market’s most challenging months and this first week did not disappoint. Worries about inflation, valuations, China tensions, and more have caused significant share price pullbacks.
Hot sectors such as lithium, uranium, and high-growth technology have fallen back to Earth, yet are still significantly higher than at the start of the year. Quite simply, we are caught in the uncertain point where momentum has waned, but too high to be considered deep value.
On a more constructive note, energy companies have emerged and are attracting significant interest. Commodity prices continue to run with oil at ~$80 per barrel and natural gas pricing ~$6.00 / mcf. Shares of the likes of Australis Oil & Gas Limited (ASX:ATS) and Tamboran Resources Limited (ASX:TBN) have rallied sharply and continue to seek investor inflows. Well done to MDs Ian Lusted and Joel Riddle.
ADX Energy LTD (ASX:ADX) also has rallied smartly as the company has announced a memorandum of understanding. In this energy patch, the positive news is being met with higher prices.
We will patiently wait to see the emergence of a new trend and suspect there will be further choppiness over the coming weeks. Investing is about the long game and we must accept there are periods of time (often long periods) in which the best course of action is to do nothing.
Placements this week
| Company Name | ASX Code | Market Cap | Issue Price | Price as of Midday Friday | % Change from issue price to current price | Stock halted? | Sector | Industry |
|---|---|---|---|---|---|---|---|---|
| SECURITY MATTERS LIMITED | SMX | $46.93M | $ 0.300 | $ 0.300 | 0.00% | Still in Halt | Commercial Services | Miscellaneous Commercial Services |
| NAVARRE MINERALS LIMITED | NML | $56.67M | $ 0.075 | $ 0.085 | 13.33% | Non-Energy Minerals | Precious Metals | |
| TITAN MINERALS LIMITED | TTM | $136.36M | $ 0.100 | $ 0.115 | 15.00% | Non-Energy Minerals | Precious Metals | |
| REGAL INVESTMENT FUND UNT | RF1 | $496M | $ 3.790 | $ 4.280 | 12.93% | Miscellaneous | Investment Trusts/Mutual Funds | |
| METAL HAWK LIMITED | MHK | $21.05M | $ 0.450 | $ 0.520 | 15.56% | Non-Energy Minerals | Precious Metals | |
| STRUCTURAL MONITORING SYSTEMS PLC | SMN | $118.15M | $ 0.620 | $ 0.970 | 56.45% | Still in Halt | Electronic Technology | Electronic Equipment/Instruments |
| ALCHEMY RESOURCES LIMITED | ALY | $8.7M | - | $ 0.013 | Still in Halt | Non-Energy Minerals | Precious Metals | |
| VANADIUM RESOURCES LIMITED | VR8 | $29.3M | - | $ 0.070 | Still in Halt | Non-Energy Minerals | Other Metals/Minerals | |
| ANTILLES GOLD LIMITED | AAU | $20.7M | $ 0.0775 | $ 0.082 | 5.81% | Still in Halt | Non-Energy Minerals | Precious Metals |
Antilles Gold Limited (ASX:AAU) is currently in a trading halt conducting a capital raise by yours truly, 180 Markets. We are very excited about this company and we have formed a cornerstone group alongside others for this raise. JS-First Group are acting as joint lead managers alongside us, and we are thrilled to be working with them and embarking on this journey together.
The $4m raise will be done at an issue price of 7.75c per share with investors receiving a 1:2 free attaching AAUOB option. Funds from the raise will be used on a final 10,000 metre drilling program La Demajagua open pit mine.
Shaun Factor, co-founder of 180 Markets said: “While the company doesn’t require the immediate cash, we were rapt to be presented with a unique opportunity to invest in Antilles, a high-quality gold company, at this crucial time in the company’s development. While we have not known Brian (MD/chairman) for long, we are truly impressed by him and his team.
“We are also very lucky to be working along JS-First Group who have completed many quality deals. The 180 Markets team are looking forward to upcoming drilling results and the growth in the resource.”
Navarre Minerals Limited (ASX:NML) has raised $40m through a fully underwritten placement to fund the consideration of the acquisition of the Mount Carlton Gold Mine. Navarre will be instantly transformed into a self-funded gold producer with premier exploration assets across Victoria and Queensland.
The upfront consideration will be $40m which will include $20m worth of Navarre shares, with the balance being paid in cash.
Jake Givoni, Analyst from 180 Markets said: “This is a company making acquisition. The investment from Evolution puts Navarre on the map. The strong tenement package that Navarre has acquired is prospective, and we look forward to upcoming newsflow from the gold exploration at Mt Carlton.”
Titan Minerals Limited (ASX:TTM) has raised $18m through an oversubscribed placement at 10c per share. Current shareholders and new institutional investors will participate alongside current Titan directors.
Funds raised under the placement will be applied to accelerate the drilling at its Dynasty Project and to advance its projects in Southern Ecuador.
Titan is now fully funded to deliver a JORC resource at Dynasty in Q4 2021. In addition to the capital being raised, the company has agreed with certain debt holders to covert debt into equity at the same price as the placement.
It is always great to see raises being done at no discount, especially when directors are taking up shares.
Regal Investment Fund (ASX:RFT) is currently in a trading halt for a $212m entitlement offer and placement. The raise price will be at $3.79 per share which represents a discount of 15% to the closing price on the 5th of October.
The Regal Investment Fund (RF1) is an ASX-listed investment trust managed by specialist alternative investment manager Regal Funds Management. Listed in June 2019, the fund provides investors with exposure to a selection of alternative investment strategies with an objective to produce attractive risk-adjusted absolute returns over a period of more than five years with limited correlation to equity markets.
Since inception on 17 June 2019, the fund has delivered a total return to investors of 116% to 30 September 2021.
Structural Monitoring Systems (ASX:SMN) has is in the process of raising $10m through our friends at Evolution Capital. The funds will be used on working capital and strategic debt optimisation.
The raise will be priced at 62c per share, which represented a 36% discount to the last close of 97c per share and is subject to shareholder approval.
The company will also conduct a non-renouncable entitlement offer to existing shareholders at the same price as the placement.
In what was an extremely popular raise at 180 Markets, there is clearly a lot of hype around this company. SMN is engaged in the development and commercialisation of its Comparative Vacuum Monitoring (CVM™) sensor technology and the operation of its wholly owned subsidiary, which specialises in aerospace manufacturing, Anodyne Electronics Manufacturing (“AEM”).
Vanadium Resources Limited (ASX:VR8) is currently in a trading halt conducting a raise to a single investor. From what we understand, the raise has been done at a premium and is not part of a general fundraise.
The investor is a strategic and we look forward to finding out more about this placement.
Thinking about taking the IPO leap?
Hitting the bourse this week
This week on the IPO front, only two new companies hit the bourse. Yesterday morning E79 Gold Mines Limited (ASX:E79) opened with a modest premium and traded approximately 25% above its IPO price for most of the day. The company raised $7m at a price of 20c per share, with the lead manager being Euroz Hartleys Limited.
Listing today is Besra Gold Inc (ASX:BEZ). Looking forward to watching the open.
Next week there is approximately eight companies listing on the ASX. We are delighted at 180 Markets to receive the privilege to have been granted access to bid into the books of six of the eight IPOs. Good luck to all those that participated.
| Company Name | ASX Code | Listing Date | Issue Price | Price as of Midday Friday | Change from issue price to current price |
|---|---|---|---|---|---|
| E79 Gold Mines Limited | E79 | 7/10/21 | $ 0.20 | $ 0.235 | 14.89% |
| Besra Gold Inc | BEZ | 8/10/21 | $ 0.20 | - | - |
Listing next week
| Company Name | ASX Code | Listing Date | Issue Price |
|---|---|---|---|
| Eastern Metals Limited | EMS | 11/10/21 | $ 0.20 |
| Minerals 260 Limited | MI6 | 11/10/21 | $ 0.50 |
| NickelSearch Limited | NIS | 11/10/21 | $ 0.20 |
| Recharge Metals Limited | REC | 11/10/21 | $ 0.20 |
| RemSense Technologies Limited | REM | 12/10/21 | $ 0.20 |
| Resilience Mining Mongolia Limited | RM1 | 12/10/21 | $ 0.20 |
| Diablo Resources Limited | DBO | 12/10/21 | $ 0.20 |
| Aurum Resources Limited | AUE | 14/10/21 | $ 0.20 |
180 Markets’ recent performers
| Company Name | ASX Code | Market Cap | Issue Price | Free Attaching Options | Price Midday Friday | % Change from issue price to current price |
|---|---|---|---|---|---|---|
| AUSTRALIAN VANADIUM LIMITED | AVL | $73.3M | $ 0.025 | 1:1 AVLOA | $ 0.0225 | -10.00% |
| RENASCOR RESOURCES | RNU | $206.7M | $ 0.011 | 1:2 RNUOB | $ 0.123 | 1013.64% |
| BRYAH RESOURCES LIMITED | BYH | $11.2M | $ 0.075 | 1:1 BYHOA | $ 0.054 | -28.00% |
| VOLT RESOURCES LIMITED | VRC | $70.8M | $ 0.015 | $ 0.029 | 93.33% | |
| ALLIGATOR ENERGY LTD | AGE | $89.1M | $ 0.007 | 1:2 AGEOB | $ 0.062 | 785.71% |
| PEPINNINI MINERALS LIMITED | PNN | $12.6M | $ 0.230 | $ 0.390 | 69.57% | |
| PNX METALS LIMITED | PNX | $29.2M | $ 0.006 | $ 0.007 | 16.67% | |
| INCA MINERALS LIMITED | ICG | $62.5M | $ 0.100 | 1:3 ICGOA + 1:3 ICGOB + 1:3 ICGOC | $ 0.120 | 20.00% |
| MOUNT BURGESS MINING N.L. | MTB | $4.93M | $ 0.008 | 1:2 MTBO | $ 0.007 | -12.50% |
| ECLIPSE METALS LIMITED | EPM | $68.9M | $ 0.015 | $ 0.046 | 206.67% | |
| REDSTONE RESOURCES LIMITED | RDS | $7.19M | $ 0.012 | $ 0.011 | -8.33% | |
| KORE POTASH PLC | KP2 | $9.89M | $ 0.020 | $ 0.021 | 5.00% |
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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