10 May 2016
$1.1 million in Capital Allotted
Chatham Rock Phosphate Limited (NZX: CRP) is pleased to advise that the pre break announcement period expired last week and it is authorised to raise capital on the basis set out in that announcement of 19 April 2016. The pre break announcement authorised CRP to issue up to $1,250,000 of new shares at $0.006.
CRP is pleased to advise that it has today issued a further 185,900,906 ordinary shares in CRP (Shares) to qualified investors at an issue price of $0.006 per Share, raising $1,115,405 (in aggregate) in new capital (New Capital).
One new investor will be entitled to nominate one director to the Board of CRP.
Share Purchase Plan
During the course of the above capital raising a number of shareholders (as retail investors) have asked CRP for the opportunity to invest at $0.006 per share. While we are only approximately $100,000 from our targeted raise amount, the Board is very conscious of the need to allow existing shareholders to participate on the same pricing. CRP is therefore proposing to undertake a share purchase plan (SPP) offer of ordinary shares (SPP Shares) to existing shareholders. CRP intends to limit the SPP to raise no more than NZ$600,000. Each shareholder of CRP may, on that basis, subject to availability or scaling, apply for up to NZ$15,000 of SPP Shares, at $0.006 per share.
A timetable will be announced shortly. CRP is currently in discussions with potential underwriters of the SPP and considers that the SPP will likely be partially or fully underwritten.
Issue of shares for services
CRP has also issued 625,000 ordinary shares in CRP to a contractor of CRP for services rendered (Service Shares). The Service Shares were issued at $0.016, being the relevant VWAP under the applicable contract for services.
Full particulars of the share issues are set out below.
For and on behalf of the Board,