Hastings Technology Metals Ltd (ASX:HAS) has announced that it has received a firm commitment from the Company?s largest shareholder, L1 Capital Pty Ltd, for a placement of 160,000,000 shares to raise a total of A$40m. The New Shares will be issued at a price of A$0.25/share, representing a 5.7% discount to the last traded price. The Placement proceeds, along with existing cash reserves, place Hastings in a strong financial position as it accelerates key work streams and mine site works at its flagship Yangibana Rare Earths Project. Hastings will have a cash balance of A$131m upon settlement of the Placement (before costs)
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 Hastings Technology Metals Ltd rose 0.75% to A$0.27/share.