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STREAMPLAY STUDIO LIMITED — Capital/Financing Update 2014
Dec 11, 2014
65841_rns_2014-12-11_b2054a8b-63ce-4840-88eb-9a8879a8a820.pdf
Capital/Financing Update
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Suite 12, 186 Hay Street PO Box 8206 Subiaco WA 6008 Subiaco East WA 6008 Australia Australia t: +61 8 9340 6000 e: [email protected] f: +61 8 9340 6060 w: www.gippslandltd.com
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NON RENOUNCEABLE RIGHTS ISSUE TO RAISE $1.96 MILLION.
Release Date: 12 December 2014
Key Points
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Non Renounceable Rights issue to raise up to $1.96 million largely for working capital whilst larger scale, Middle East focused financing is pursued;
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The Offer price is 0.2 cents per new share, a 34% discount to the 30 day VWAP.
Gippsland Limited (Gippsland or the Company), is pleased to announce that it will be undertaking a nonrenounceable pro-rata entitlement issue ( Entitlement Issue ) to raise up to $1.96 million. Eligible shareholders will be able to subscribe for 5 new shares in Gippsland, for every 7 existing shares they hold at the Record Date, at an issue price of $0.002 per share. The issue price represents a 34% discount to the volume weighted average price (VWAP) over the last 30 trading days.
In addition, Gandel Metals Pty Ltd ( Gandel Metals ), a company associated with the Company’s Chairman, Ian Gandel, has provided a further funding commitment of up to $397,000 by way of a loan ( New Gandel Metals Loan ). Gandel Metals and the Company have agreed, that the New Gandel Metals Loan shall be offset against the subscription price payable by either Abbotsleigh Pty Ltd (another company associated with Ian Gandel) or Gandel Metals for the subscription of up to 198,500,000 Shares under the Entitlement Offer or Shortfall Offer, subject to the minimum subscription of $900,000 being reached.
The Company has previously entered into various loan agreements with Gandel Metals under which Gandel Metals has loaned $3,337,000 ( Existing Gandel Metals Loan ) to the Company. The Existing Gandel Metals Loan is currently payable on 31 January 2015, which shall be extended to 30 April 2015 if the Minimum Subscription is raised under the Offer. The Company will not use the funds raised from the Offer to repay the Existing Gandel Metals Loan.
The Company’s Chairman, Ian Gandel said “The Board and I have decided to provide this opportunity to all Gippsland shareholders to ensure the Company has sufficient funds to see it through this next phase, which we hope will lead to the ultimate project funding and development for Abu Dabbab. The key risk revolves around our ability to finalise one of several financing opportunities currently under preliminary discussions with investors from the Gulf region. Clearly I have been encouraged enough to date to continue my funding program and I remain of that view which is why I am planning a further significant position in this Offer. However, nothing is assured and there remains significant uncertainty as to the ultimate success of Abu Dabbab and the Company”.
Funds raised will be used predominantly to fund the costs of the Offer, the Company’s operations in Australia and Egypt and to finance efforts to secure financing of the Abu Dabbab tantalum tin feldspar project in Egypt as soon as possible.
A Prospectus and Appendix 3B will follow.
Mike Rosenstreich (Managing Director) www.gippslandltd.com
T: +61 8 9340 6000
1 Non renounceable Rights Issue 10 December 2014