Lucapa Diamond Company Limited (ASX:LOM) Launches A$1.5M Share Purchase Plan
Share Purchase Plan Overview
Lucapa Diamond Company Limited (ASX:LOM) has announced the launch of a share purchase plan (SPP) aimed at providing eligible shareholders an opportunity to subscribe for up to A$30,000 worth of new shares. This initiative follows a recently disclosed A$3 million placement. The Company plans to issue up to 75 million new shares at A$0.02 each. The SPP could potentially raise A$1.5 million before costs.
Benefits for Shareholders
Holders of shares as of the record date will have the chance to participate in this optional plan. Each participant will receive one free unlisted option for every two shares purchased. This strategy allows shareholders to increase their stake without incurring brokerage fees and adds flexibility to their investment.
Future Use of Funds
The proceeds from the share purchase plan will be primarily allocated towards accelerating the exploration program at the Merlin Diamond Project and general working capital requirements. Managing Director and CEO Alex Kidman stated, “This share purchase plan is designed to strengthen our shareholder base while providing the necessary funding to support our exploration ambitions.”
Key Dates and Approval
Key timelines have been established for the SPP, including a closing date of 22 January 2025. The issuance of the shares and options is contingent upon approval from shareholders at an extraordinary general meeting on 17 January 2025. Eligible shareholders are encouraged to submit their applications promptly.
Conclusion
Lucapa Diamond Company Limited continues to engage with its investors by offering opportunities that support its growth strategy. The SPP is a proactive step towards boosting shareholder involvement while facilitating further development in the diamond exploration sector.
Motley Fool contributor Kiarra Jackson 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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