Capital Raises Weekly Wrap - 15/10/2021

The past week in capital raising has seen 15 companies from 6 different sectors raising to fund their next stages of development. The materials sector was the most active sector with 10 placements completed totalling just under $176m raising at an average discount of 4.64% to trading halt price.

Gold explorers lead the way for the materials sector with 5 of the 10 raises being undertaken by gold companies who combined raised just over $14m for their next stages of exploration.

Placement Overview

*Placements are limited to those which left a trading halt between 11/10 and 15/10

Digital Wine Ventures (ASX:DW8) raised $12.75m via placement at an issue price of $0.056 which represented a 15.2% discount to the last traded share price of $0.066 cents, 14.9% discount to the 15-day volume-weighted average share price, and 11.6% discount to the 30-day volume-weighted average share price. Funds raised under the placement will be applied as follows;

- $6.75m to fund the cash consideration for the acquisition of Kaddy (please see ASX announcement for further information on the Kaddy acquisition);

- $5.3m for expansion capital for the Kaddy marketplace;

- $0.70m in capital raising costs.

Wellfully Limited (ASX:WFL) raised $5m via placement at an issue price of $0.13 which represented a 10.3% discount on the last close price. In addition, the company will seek shareholder approval under ASX Listing Rule 7.1 for the issue of 1 free-attaching option for every 3 placement shares subscribed for, exercisable at $0.20 each on or before 24 months from the date of issue.

Funds raised in the placement will be used to support RÉDUIT marketing and sales initiatives including consumer engagement via enhanced marketing (influencer, key opinion leader and media engagement) and execution of new B2B collaborations in new and existing jurisdictions, the development and launch of new devices including completion and launch of RÉDUIT Active Sunscreen and Boost Applicators, the global roll-out of SWISSWELL Lubricen pain patches with the initiation of marketing activities and engagement with potential collaborators, and global licensing through ODM and OEM collaborations.

Kalium Lakes Limited (ASX:KLL) raised $50m via a two tranche placement with funds to be used to support the expansion of Kalium Lakes’ Beyondie SOP Project to 120ktpa and provide working capital during the ramp-up. The issue price of $0.18 represented an 18.2% discount on the last close price.

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 to the first week of June. This was poor week which saw 11 placements completed with 8 of the 11 placements finishing below the placement issue price 90 days post the capital raise. The average change from issue price was a decrease of 6%.

Top performing:

• Artemis Resources Limited (ASX:ARV) peaked at a 58% increase from issue price 69 days post raise and fell back to an increase of 40% after 90 days.

• Wisr Limited (ASX:WZR) peaked at a 26% increase from issue price 61 days post raise and fell back to an increase of 2% after 90 days.

Worst performing:

• Bryah Resources Limited (ASX:BYH) saw a 35% decrease from issue price 90 days post raise.

• CZR Resources Limited (ASX:CZR) saw a 30% decrease from issue price 90 days post raise.

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