Concreter Eden cancels cap raising after market chaos; shares drop
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High-tech concrete maker Eden Innovations has cancelled a $6 million cap raise after struggling to tie down nervous investors following last week’s market turmoil.
The shares fell 20 per cent to 12c in early Monday trade, valuing the company at $197 million. They recovered to 13.5c by 12.30pm AEDT.
“The renewed extreme volatility in the global financial markets on Thursday 8 February and in Australia on 9 February resulted in Eden deciding to defer the capital raising until the market stabilises,” the company told investors.
Eden (ASX:EDE) wanted to raise money at 12c a share — it closed on Friday at 15c — and had finally secured some formal commitments by the end of last week, two weeks after it started the process.
The company had already suspended its shares on Monday last week as it moved into a second week of trying to secure commitments for the private share placement in Australia and the US.
The company says it has enough money to make it through the quarter, with $1.5 million cash in bank ands sales receivables due of $US100,000 ($127,900).
It has up to $4.67 million available from options, a major shareholder says it’ll raise some money for the business via 81 million of its own options, and Eden expects sales from highway repair projects in Georgia, US, and pre-stressed bridge beam construction projects in Texas.
Stockhead is seeking comment from Eden Innovations.