Photo by: Bloomberg
PERTH (miningweekly.com) – Dual-listed Jervois Global has launched a $50-million capital raising to strengthen its balance sheet, improve liquidity and reduce debt.
The $50-million capital raise will include a $25-million fully underwritten 1-for-3.34 accelerated non-renounceable entitlement offer, which will be priced at 6c a share. The offer price represents a 9.1% discount to Jervois’ last closing price.
Jervois will issue 622.7-million shares under the entitlement offer, equivalent to 23% of the company’s outstanding ordinary shares upon completion of the entitlement offer. The company’s largest shareholder, AustralianSuper, has committed to taking up its full entitlement and sub-writing, which will leave the shareholder with a 25% interest in Jervois.
The entitlement offer will consist of an institutional and a retail component, with the retail component to open on July 5 and close on July 18.
In addition to the entitlement offer, the capital raise will also include $25-million in unsecured convertible notes maturing in July 2028, which will be convertible into ordinary shares in the company. The initial conversion price of the notes represents a 40% premium to the entitlement offer theoretical exp rights price and the notes carry a 6.5% a year coupon.
Net proceeds from the capital raising will strengthen Jervois’ balance sheet, improve liquidity and working capital flexibility, with cash also being applied to debt reduction. Once expected debt payments are complete, Jervois will have a pro forma cash balance of $65-million, the company said on Wednesday.
The capital raising will support Jervois’ refocused strategy to respond to historic low cobalt prices, including the continued implementation and delivery of its turnaround operation in Finland, a focus on strategic partnerships to position the company for expected re-rating on cobalt price recovery, and increased cooperation on critical mineral supply chain security with its host governments.