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Capital Raises Weekly Wrap - 26/07/2021
Capital Raising Wrap
Capital Raises Weekly Wrap - 26/07/2021
This past week has seen two large placements undertaken by (ASX:PBH) and (ASX:DUB) who combined raised $325m, more than half of funds raised across all placements. Funds were raised primarily from overseas and institutional investors.
The health sector also began to see some activity with three raises taking place to combine to raise $147m. (ASX:IMU) raised to $90m to fund their prospective programmes for the next four years, with a focus on developing immuno-oncology assets. (ASX:ARX) raised $47m primarily to restore cash on their balance sheet, but also to invest in US commercial operations, and support their research and development pipeline. (ASX:CAN) raised the last $10m in the sector to support investment in further integration of their supply chain and expand the production capabilities of its medicinal cannabis products.
*Placements are limited to those which left a trading halt between 26/07 and 30/07.
Pointsbet Holdings Limited (ASX:PBH) raised $215.1m via placement with an additional $184.9m to be raised through a 1 for 9 entitlement offer. Funds will be used for US marketing and client acquisition, technology and product development, US market access and licensing fees, scaling operations and investment in talent, and balance sheet flexibility. The issue price of $10.00 represented an 11.4% discount to the last close of $11.29 and a 16% discount to the 5 day VWAP of $11.91.
Simble Solutions Limited (ASX:SIS) raised $1.5m via placement with funds to be used to accelerate growth activities in Australia and the UK including strengthening sales and marketing capability, increasing technology delivery capacity and online e-commerce initiatives for CarbonView. Investors who participated will receive one free attaching option for every two shares subscribed for under the placement exercisable at $0.04 with a three-year term. (ASX:SIS) also plans to launch a bonus options issue for existing shareholders on a one for ten basis. The terms of the options will be the same as those issued under the placement. The issue price of $0.025 represented a 13.8% discount on the last close.
Decmil Group Limited (ASX: DCG) raised $10m via placement with a further $20m raised via a debt facility. The placement was strongly supported by (ASX: DCG) existing shareholders and comprises the issue of 25 million shares at an offer price of $0.40 per new share. The funds raised will be used to progress (ASX: DCG)'s growth strategy in FY22 and beyond, in tandem with reducing reliance on the National Australia Bank overdraft facility (recently extended to July 2023) and the Company’s surety bonding facilities. The offer price represented a 7% discount to the last closing price and an 8.6% discount to the 5-day VWAP.
Placement 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 Capital Raise Performance
Looking back at how some capital raises have performed 90 days post capital raises, it takes us back to mid-march, where 17 raises took place with activity occurring across the market.
Queensland Pacific Metals Ltd (ASX:QPM) peaked at a 131% increase from issue price 54 days post capital raise and is currently sitting at a 106% increase 90 days post raise.
Great Northern Minerals Limited (ASX:GNM) peaked at an 80% increase from issue price 55 days post capital raise.
Calix Limited (ASX:CXL) peaked at a 61% increase from issue price 90 days post capital raise.
Medlab Clinical Ltd (ASX:MDC) saw a 25% decrease from issue price 90 days post capital raise.
Pure Hydrogen Corporation Limited (ASX:PH2) saw a 37% decrease from issue price 90 days post capital raise.
Vital Metals Limited (ASX:VML) saw a 23% decrease from issue price 90 days post capital raise.
Check out our Past Capital Raises page for more information on past transactions.
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