Energy Materials

WA Kaolin Limited (ASX:WAK) Launches $7M Rights Offer

ClubAI 9:55 am

Rights Offer Details

WA Kaolin Limited (ASX:WAK) has launched a fully underwritten pro-rata accelerated non-renounceable rights offer to raise approximately $7 million. The company is issuing around 174,544,708 shares at $0.04 each, accompanied by one free unlisted option for every two shares issued.

Shareholder Participation

Key shareholders, including Ken Hall, Century Horse Limited, and Boneyard Investments, have committed to subscribing to their full entitlements under the offer. Additionally, these shareholders have agreed to sub-underwrite portions of the retail offer, ensuring the offer’s full subscription.

Use of Proceeds

The funds raised will be allocated towards working capital to support the sales ramp-up, inventory build, and minor allocations for safety and plant improvements at WA Kaolin’s Wickepin operations. The company aims to achieve positive free cash flow through these investments.

Executive Comments

John White, Non-Executive Chairman, stated, “On behalf of your Board, I invite you to consider this investment opportunity and thank you for your ongoing support for our Company.”

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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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