Capital raising: Hastings shareholders demand same rights as new investors
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Shareholders of Hastings Technology Metals (ASX:HAS) told the rare earths explorer if it wants to raise $16.5m via a rights issue they wanted the same deal new investors were getting.
Hastings told the market today that shareholders had requested the company give them free attaching options as well.
Free attaching options give shareholders the right to convert the options to shares at a certain price within a certain timeframe.
Hastings announced earlier this week that it was undertaking a placement to raise $12m via the issue of shares at 17c each and a $16.5m rights issue at the same price.
The placement offered one free option for every two new shares subscribed for, but the rights issue didn’t.
Hastings is now withdrawing its current rights issue and will launch a new rights issue offering shareholders one free attaching option for every two new shares they subscribe for.
Shareholders can convert the options to shares at a cost of 25c each before April 12, 2022.
Executive chairman Charles Lew said he hoped the improved rights issue would be as well subscribed as the placement was.
Hastings is working to bring its Yangibana rare earths project in Western Australia.
The company said last week the Australian government’s Northern Australia Infrastructure Facility (NAIF) has indicated it will further investigate the potential for NAIF to provide debt finance for the Yangibana project.
Antipa Minerals (ASX:AZY) has undertaken a placement to raise $5.1m to speed up its copper and gold hunt in the much talked about Paterson Province of Western Australia. Antipa said the placement was strongly supported by existing shareholders and introduced a number of new, high quality domestic and international investors to the company’s share register.
GME Resources (ASX:GME) launched an entitlements issue to raise up to $1.3m. The company plans to use the cash to continue advancing its NiWest nickel and cobalt project towards production.
Canada’s First Cobalt (ASX:FCC) closed a private placement, raising $1.6m. The cash will be used to fund work on its cobalt refinery in Ontario. First Cobalt is investigating a potential restate of the 2,000-tonne-per-annum refinery.
Crusader Resources (ASX:CAS) has had to turn to its chairman Stephen Copulos for some cash to tide it over until it receives the funds from an upcoming fundraising. Copulos, the company’s major shareholder, has agreed to loan Crusader $750,000 at a 5 per cent per month interest rate.