Healthcare group, Stirling Products Limited (ASX:STI) is pleased to offer all eligible shareholders the opportunity to participate in a Share Purchase Plan (“SPP”).
The SPP will provide each eligible shareholder the opportunity to subscribe for a minimum of $2,000 up to a maximum of $15,000 worth of new STI shares without incurring any brokerage fees. The SPP will give shareholders the opportunity to increase their respective investment position in the Company at a cost that, in many cases, would be substantially less than their original cost of investment. Participation in the SPP is entirely voluntary.
Shareholders subscribing for shares under this SPP, have the opportunity to advantage themselves of the current low market value of the Company’s securities, at a discount to the market and at the same price as that paid by sophisticated investors in a recent placement as advised to the market on 5 April 2011. Further, as the Company is planning to spinout its TeleMedCare interests, potentially through global region licenses, with the first of these planned to be in process by 30 June 2011, this SPP provides the Company’s smaller shareholders the opportunity to increase their level of participation in such planned spinout(s) through a proposed pro-rata share distribution.
The issue price per share under the SPP is $0.004 per share. The issue price was determined based on a 2.5% discount to the volume-weighted average price of STI shares traded on ASX over the last 5 trading days prior to this announcement.
Eligible shareholders will be those STI shareholders with registered addresses in Australia or New Zealand as at 5.00pm (EST) on 5 April 2011 (Record Date). Certain custodians and nominees will be able to participate on behalf of each eligible beneficiary for whom they hold STI shares at the Record Date. Further details will be set out in the SPP terms and conditions.
The Company reserves the right to scale back applications under the SPP if total demand exceeds approximately 620 million shares in order to comply with ASX Listing Rules.
The funds raised from the SPP will supplement the Company’s working capital as the Company moves forward with product manufacturing at its pharmaceutical plant in Nova Scotia, Canada and ongoing sales and marketing activities throughout pharmacies in Australia and to select businesses in North America.
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