Capital Raises Weekly Wrap - 01/10/2021

The past week in capital raising has seen 17 companies from 6 different sectors raising to fund their next stages of growth. The technology sector came alive this week raising the most of any sector with 5 companies combining to raise $63m at an average discount of 19.2%.

The materials sector saw the most raises with 7 placements completed totalling just under $41m raised including 5 from material companies with a gold focus.

The largest placement of the week in the health sector was undertaken by (ASX:PEB) a recently ASX listed cancer diagnostic company that is seeking to accelerate growth in the company’s key US market.

Placement Overview

*Placements are limited to those which left a trading halt between 27/09 and 01/10

92 Energy (ASX:92E) raised $7.5m via placement with the funds to be used to progress its exploration activity at the Gemini Project following 92E’s recent announcement of the discovery of basement hosted uranium mineralisation (refer ASX announcement 20 September 2021). Issue price represented a 5.9% discount to the last closing and a 6.1% premium to the 15-day VWAP per 92E share.

Armour Energy (ASX:AJQ) raised $8.2m via placement at an issue price of $0.026 which represented a discount of 21% to the last traded priced of $0.033. Funds raised together with existing funds will be used for the Northern Basin Business demerger and IPO costs, progressing planning and approvals for proposed 2022 work program, tenure compliance expenditure, Kincora processing facilities and pipeline maintenance, servicing and ensuring compliance with debt facilities, the costs of the offer, trade creditor payments and general working capital.

Tesserent Limited (ASX:TNT) raised $25m via placement with funds to split approximately as follows:

• $6m relating to the upfront cash component of consideration for Loop Secure (~6x EV/EBITDA);

• $5m relating to the deferred cash consideration component and earn-out component for Airloom (implied earnout multiple at 2x incremental EBITDA);

• $11m relating to first half of the 40% cash consideration of strategic acquisitions under the acquisition strategy previously disclosed to the market (~4.5-~6x EV/EBITDA); and

• $3m relating to planned investments executed through Tesserent Innovation, and transaction and capital raise costs.

The issue price of $0.21 per share represented a 9.3% discount to 10-day VWAP of $0.232.

Sector Breakdown

For a more detailed look at how the ASX sectors are performing check out: https://www.freshequities.com/ASX/sectors 

90 Days Post Placement Performance

Looking back 90 days to see how placements have performed post placement takes us back to late May 2021. This week saw 3 placements (ASX:ART), (ASX:PRL), and (ASX:LBY) finish the 90 days post the raise with a 0% change from the issue price.

• Toro Energy Limited (ASX:TOE) peaked at a 113% increase from issue price 84 days post raise and fell back to an increase of 26% after 95 days.

• Mayur Resources Limited (ASX:MRL) peaked at a 40% increase from issue price 67 days post raise and fell back to an increase of 28% after 78 days.

Check out our Past Capital Raises page for more information on past transactions.