Tech: Blockchain gamers Animoca need to raise… $15
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Blockchain gaming company Animoca Brands (ASX: AB1) has issued a new prospectus for a pending capital raise.
But it’s not the kind of prospectus you see every day; the company plans to issue 100 shares at 15 cents (equal to the current market price), raising the grand total of just $15.
The offer will only be extended to “specific persons on invitation from the Directors. Application forms will only be provided by the Company to these persons”, Animoca said.
Shares in the company were unchanged in morning trade:
To be sure, it looks slightly unusual when an ASX-listed company with a market cap of $117.7m taps the market for lunch money.
However, the reason for this particular filing isn’t to raise capital; the move is largely administrative in nature.
Animoca is effectively reissuing forms to correct a previous oversight which potentially left its previous share issues subject to trading restrictions.
“As announced to ASX on 23 May 2019, the company has become aware that certain prior share issues made by the company were not accompanied by the issue of a cleansing document so as to permit immediate trading in these shares,” Animoca said.
A cleansing notice ensures that issued shares are not subject to secondary trading restrictions in accordance with S708A of the Corporations Act.
The company also recognised four dates between September 2018 and January 2019 when it issued cleansing notices that may not have been valid, due to the company’s shares being in suspension for a total of more than five days over the previous 12 months.
As a result, Animoca is issuing the prospectus to “cleanse shares issued on or before the closing date (4 June 2019) so that subsequent trading is not subject to secondary trading restrictions under the Corporations Act”.
While the company is raising $15, it will finish up in the red. Administrative cost associated with the offer will total $11,500, which Animoca will fund out of its cash reserves.