Boss Energy Ltd (ASX:BOE) has announced a A$125m capital raising to fund Boss to become Australia?s next Uranium producer. The capital raising will be Two Tranche Placement to sophisticated, professional and other institutional investors to raise up to A$120m comprising the issue of up to 55.8m new shares. Boss also proposes a Share Purchase Plan, which aims to raise up to A$5m on the same Offer Price as the Placement.
When an ASX-listed company announces a capital raising, it generally means it is selling more shares to raise money.
More often than not, the shares are sold at a discount to the company?s share price at the time to entice new and existing investors.
Following the announcement, shares in Boss Energy Ltd remained in a trading halt.