Dear Chatham Rock Phosphate Shareholder,
This announcement was filed with NZX last night and has just been released this morning.
Chief Executive Officer
Chatham Rock Phosphate Limited
Cell: +64 21 558 185
22 April 2014
Completion of Rights Issue and AIM Listing Update
Chatham Rock Phosphate Limited (NZX: CRP) is pleased to advise that it has today allotted new shares under its rights issue to existing shareholders.
The rights issue has been extremely well supported with $1,795,315.95 subscribed out of a maximum of approximately $2.1 million under the offer. Net of oversubscriptions of $182,500, a total of $1,612, 800 was subscribed.
There was strong interest in the oversubscription facility where applicants could apply for additional shares in excess of the rights they held. A total of 4,016,934 shares were applied for in the oversubscription facility and with this facility limited to 2.8 million shares CRP has had to scale all oversubscription facility applications in accordance with the prospectus. Affected applicants will be refunded excess application monies shortly.
As previously advised the rights issue was fully underwritten and the shortfall of 3,670,690 shares will be placed with the underwriter in approximately one weeks’ time. Full details of today’s allotment to applicants are set out below.
The Board of CRP thanks shareholders for their outstanding support of this offer.
AIM Listing Update
As previously advised to the market CRP intends to undertake a capital raising and secondary listing on London’s AIM market. Considerable work has been progressing in this respect. CRP is pleased to advise that it has secured its advisory team in this respect and has engaged:
· Nominated Advisor and Broker: Daniel Stewart & Company plc.
· Lead Financial Advisor and Broker: Wimmer Financial LLP.
· UK Legal Adviser: Fasken Martineau.
· Investigating Accountant: BDO.
It is intended to raise approximately NZ$8 million through this capital raising. Pricing for the capital raising has not yet been determined. The proceeds will be applied principally to the costs associated with CRP’s marine consent application and meeting CRP’s overheads ideally until all approvals and contracts are in place for our rock phosphate project on the Chatham Rise.
At present CRP is working through due diligence requirements associated with the capital raising and AIM listing. It is intended that the offering will commence in June.
Class of security: Ordinary shares
Number issued: 10,751,839 ordinary shares
Issue price: $0.15 per ordinary share
Payment in cash: Yes
Fully paid: Yes
Percentage of class: 6.93%
Purpose of the issue: As set out in rights issue prospectus
Authority for the issue: Board resolutions and NZAX Listing Rule 7.3.4
Date of issue: 22 April 2014
Total number of securities on issue following allotments: 155,157,137 ordinary shares