Rapid Lithium Limited (ASX:RLL) Announces Entitlement Offer
Rapid Lithium Limited (ASX:RLL) has announced a partially underwritten entitlement offer to accelerate exploration activities in the USA. The offer aims to raise up to $2 million, through a mandate with GBA Capital Pty Ltd, acting as a partial underwriter for $1 million.
Offer Details
Eligible shareholders will receive a new share for every 1.46 shares held, priced at A$0.004 per share, which represents a 33.3% discount compared to the closing share price on December 10, 2024. Shareholders will also receive three free attaching options for every two new shares, exercisable at $0.017 and expiring on October 23, 2027.
Funds raised will primarily support exploration initiatives in the USA, associated costs with the entitlement offer, and working capital. The entitlements are non-renounceable, meaning they cannot be traded on the ASX.
Underwriting and Sub-underwriting Agreements
GBA Capital will receive a 6% underwriting fee from the proceeds, with additional fees applicable for shortfall securities. Sub-underwriting agreements have been entered with select investors, including Strata Investment Holdings Plc, which will acquire $100,000 worth of new shares.
Martin Holland, Managing Director of Rapid Lithium, commented, “This entitlement offer will provide our existing shareholders with an opportunity to increase their stake in Rapid Lithium and support our ongoing exploration efforts.”
Timetable Overview
The indicative timetable for the entitlement offer includes key dates, such as the record date on December 24, 2024, and the offer closing date on January 31, 2025.
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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