Corporate: Hastings short $10m after flunking its retail cap raise
Rare earths explorer Hastings Technology Metals (ASX:HAS) only raised 15 per cent of an anticipated $16m rights issue to shareholders.
They raised just $2.5m and $3.5m of the total raising was underwritten, meaning they will be short $10m.
The company wanted to extract from investors a total of $28.5m in order to build a 380 room accommodation village at its Yangibana rare earths project, as well as pay for early infrastructure earth works and make progress payments for equipment currently on order, namely the rotary kiln and off-gas scrubber.
They’d already received $12m from institutional and sophisticated investors.
But retail investors didn’t get, a part of their deal, the options the institutions did.
Director Charles Lew backed the retail offer with a $1m buy-in, getting 5.9m shares at 17 cents each.
Hastings shares jumped over 40 per cent in March but are now back to February levels, at 14.5c.
Regal Funds Management has been selling Zip Co (ASX:Z1P) shares in May, selling twice from a 7.8 per cent shareholding down to 5.12 per cent.
Asset manager Wilson Asset Management was also cashing out, selling some of its stake in clothes retailer City Chic Collective (ASX:CCX). Wilson bought in throughout early 2018, spending nearly $9m to build a 9 per cent stake. In April major investor Nigel Evans cashed out $46.5m after its big spike in the preceding 18 months. But the stock has continued to rise, from $1.50 to $1.90 and in recent weeks Wilson made $7.7m by selling 20 per cent of their stake.
New Zealand-based software provider Gentrack (ASX:GTK) reported half year revenue of $54.4m and a $4.6m profit.