WT Financial Group Limited (Company) (ASX: WTL) was on Friday 11 March 2022 granted a halt in trading (Trading Halt) pending the release of an announcement regarding a proposed material acquisition (Pending Acquisition) and associated capital raising.
WTL advised the market later that day that it had completed an oversubscribed bookbuild to raise $3M cash to assist with the Pending Acquisition. Following scale backs WTL now confirms the placement will be for 30,399,400 ordinary shares (Placement) to institutional and professional investors at an issue price of $0.10 a share to raise a total of $3,039,940. The bookbuild was handled directly by the Company. The issue price represented a 22% premium to the VWAP of $0.082 for WTL Shares over the past 30 trading days. Associated Appendix 2As will be lodged in due course.
Further, the Company is now pleased to announce it has entered into a secured corporate debt facility (Facility) for up to $6.7M with Altor Credit Partners, a subsidiary of Altor Capital (Altor).
Under the Facility arrangements an initial $4.7M may be drawn to assist with the Pending Acquisition, for repayment of existing debt facilities, and for working capital.
The Facility has a fixed term of 4-years; may be repaid at any time; and will be secured by a first ranking security over the assets of the Group if and when drawn.
The Company has also agreed to issue Altor 1,500,000 4-year options to acquire WTL shares at an exercise price of $0.14 per share (Options). The Company said it has worked closely with Altor to develop an innovative and flexible funding solution that will enable it to minimise dilution to shareholders and maximise EPS accretion.
An Appendix 3B for the Options will be lodged later today and an associated 2A lodged in due course.
The trading halt will remain until the earlier of re-commencement of the Company’s Share trading on Tuesday 15 March 2022, or release of a market announcement regarding the Pending Acquisition.
For more information, download the attached PDF.
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