8 May 2013
Algae.Tec Limited (ASX: AEB) is pleased to announce that it has received commitments for the placement of new fully paid ordinary shares to corporate investors for the sum of $1 million (Placement).
Algae.Tec will issue 4,545,455 fully paid ordinary shares at $0.22 per fully paid ordinary share.
Algae.Tec is also pleased to announce a Shareholder Purchase Plan for all eligible shareholders on Algae.Tec’s register with addresses in Australia and New Zealand to apply for a maximum of $15,000 in value of ordinary shares in Algae.Tec (subject to any scale-back determined by Algae.Tec’s directors) at $0.22 per fully paid ordinary share. No brokerage or transaction costs will be incurred by shareholders under the Shareholder Purchase Plan (SPP).
The purpose of the Placement and SPP is to provide funds for:
- Increase personnel resources for commercialisation of its technology
- Complete validation at the company’s demonstration plant in Nowra NSW
- Repay and terminate the convertible note arrangement with La Jolla Cove Investors
- For general working capital requirements.
Further details in relation to the proposed SPP will be provided in the SPP Offer Booklet and Application Form, which will be sent to eligible shareholders in the next few days.