Business
Talga Group Ltd - Successful A$9.5m institutional placement
Talga Group Ltd - Successful A$9.5m institutional
About this update from Talga Group Ltd.
Battery materials company Talga Group Ltd ('Talga' or 'the Company') (TLG:ASX) is pleased to announce it has received firm binding commitments for a placement of new fully paid ordinary Talga shares ('New Shares') at a price of A$0.38 per share, to raise A$9.5 million before costs ('Placement'). The placement was strongly supported by existing major long term shareholders and several domestic and international institutional investors. Placement Details The Placement, jointly managed by Euroz Hartleys Limited and Bell Potter Securities Limited , will result in the issue of 25 million New Shares to raise gross proceeds of A$9.5 million . This represents approximately 6.6% of Talga's existing fully paid ordinary shares on issue immediately prior to the issue of the New Shares. The New Shares will be issued pursuant to the Company's existing capacity under ASX Listing Rule 7.1. The Placement is scheduled to settle on Tuesday, 6 August 2024 with the New Shares commencing trading on ASX on a normal basis on Thursday, 8 August 2024 . Proceeds from the Placement will be used to fund pre-execution activities during the final stages of Vittangi Anode Project development and execution readiness ahead of Financial Investment Decision ('FID'), progress mineral resource and anode production expansion studies, progress the SQM lithium joint venture and general working capital including project funding transaction costs. Prospectus Offer Details Talga is pleased to offer all shareholders in Australia and New Zealand registered on the record date ('Eligible Shareholders') the opportunity to participate in a non-underwritten offer of New Shares under a prospectus ('Prospectus') to raise approximately an additional A$5.0 million1 ('Prospectus Offer'). Eligible Shareholders may apply for up to A$30,000 of New Shares under the Prospectus Offer. Under the Prospectus Offer, Talga shares will be offered at the same issue price as the Placement of A$0.38 per Share. The New Shares will be issued pursuant to the Company's existing capacity under ASX Listing Rule 7.1. Any Prospectus Offer proceeds will be used to fund pre- FID Vittangi Anode Project development and general working capital. The record date for the Prospectus Offer is 5:00pm (AWST) on Friday, 26 July 2024 . The offer period for the Prospectus Offer is anticipated to be open from Friday, 9 August 2024 to Friday, 23 August 2024 , subject to Talga's discretion to amend these dates. The Talga Board has determined to target raising A$5.0 million from the Prospectus Offer. As the Prospectus Offer is not underwritten, the Prospectus Offer may raise less than this amount. In the event the Prospectus Offer is oversubscribed, the Company may apply scale backs. In conducting any scale back, the Board may take into account a number of factors including the date that the applications are received and the extent to which the applicant has sold or purchased Shares since the Record Date. This means that the Company may reject certain applications, in whole or in part. Accordingly, Talga encourages Eligible Shareholders who wish to participate to act promptly when the Prospectus Offer opens. Under Listing Rule restrictions the Company's Directors are not able to participate in the Prospectus Offer without prior Shareholder approval. Since Shareholder approval has not been obtained, the Directors are not eligible to participate in the Prospectus Offer. Further information regarding the Prospectus Offer (including terms and conditions) will be provided to Eligible Shareholders in the Prospectus following the completion of the Placement. Eligible Shareholders wishing to acquire New Shares under the Prospectus Offer will need to apply in accordance with the instructions in the Prospectus. Participation in the Prospectus Offer is optional. The indicative timetable for the Prospectus Offer is as follows, and will be confirmed when the Prospectus is dispatched: Contact: Mark Thompson Managing Director Talga Group Ltd Tel: +61 (0) 8 9481 6667 About Talga Talga Group Ltd (ASX:TLG) is a leader in the development of sustainable battery materials. Via innovative technology and vertical integration of our 100% owned Swedish graphite resources, Talga offers a secure supply of products critical to the green transition. Talga's flagship product, Talnode-C, is a natural graphite anode material made using renewable energy for a low emissions footprint. Battery materials under development include an advanced silicon anode product and conductive additives for cathodes. Website: www.talgagroup.com (C) 2024 Electronic News Publishing, source ENP Newswire