Astron Corporation Limited (ASX: ATR) Completes Successful Capital Raising

Capital Raising Overview

Astron Corporation Limited (ASX: ATR) has successfully completed its recent capital raising, which included an institutional placement and a pro rata accelerated non-renounceable entitlement offer. The total amount raised was approximately A$14.5 million before costs. This capital will support the Company’s ongoing projects and operational strategy.

The institutional placement raised $3.0 million, while the retail entitlement offer closed oversubscribed, accumulating about $11.5 million. Approximately 12,823,171 new CDIs were subscribed, generating $8.5 million. The offer faced a shortfall of 2,396,815 CDIs.

Strong Demand and Allocation

Astron responded to the strong demand for Additional New CDIs by allocating the entire shortfall to applying securityholders. Furthermore, the Company announced a top-up placement of 2,272,727 CDIs to accommodate additional requests.

Managing Director Tiger Brown expressed satisfaction with the outcome, stating, “The Company is delighted with the support from the Company’s securityholders through their participation in the Entitlement Offer which we feel indicates confidence in the long-term value of the Company’s business.”

Future Outlook

The settlement for the retail entitlement offer, along with the shortfall and top-up placement, is expected on 6 December 2024. Issuance of new CDIs will take place on 9 December 2024, with trading set to commence on the ASX by 10 December 2024.

Following this capital raise, Astron will maintain a robust securities base, including 204,673,938 CHESS Depositary Interests and other vested options.

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Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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