Vinyl Group Ltd (ASX:VNL) Retail Entitlement Offer Commences
Vinyl Group Ltd (ASX:VNL) has announced the commencement of its Retail Entitlement Offer, aimed at raising approximately A$7.645 million through a fully underwritten non-renounceable entitlement offer. The offer opens today, 24 December 2024, and will close on 15 January 2025.
Details of the Offer
Eligible retail shareholders, who held shares at the close of 19 December 2024, are invited to participate by acquiring 1 new share for every 15.5 shares held, at an offer price of A$0.10 per share. On completion, Vinyl Group expects to issue more than 76 million new shares.
The proceeds from the offer will primarily fund the acquisition of Concrete Playground Pty Ltd and replenish cash reserves following recent acquisitions. After costs, the total estimated net raise is A$7.274 million.
Shareholder Participation
The offer is non-renounceable, meaning shareholders who do not participate will see their entitlements lapse without any payout for unaccepted portions. Shareholders can also apply for additional shares through a Shortfall Facility.
The company asserts that if the offer prices are maintained, the anticipated capital will enhance its financial stability and help achieve profitability in the medium term.
The detailed terms and conditions of the Retail Entitlement Offer can be found in the Offer Document dispatched to eligible shareholders.
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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