Andromeda Metals (ASX:ADN)
has successfully completed a $30 million placement through new fully paid ordinary shares, to institutional and professional/sophisticated investors. The company will undertake a $15 million share purchase plan (the SPP) to eligible shareholders on the same terms as the placement.
Under the placement, the company will issue approximately 200 million shares at $0.15 per share. Settlement of the placement is scheduled to occur on Tuesday 6 July 2021.
Under the SPP, Andromeda will give eligible shareholders in Australia and New Zealand the opportunity to apply for a maximum of $30,000 worth of new fully paid ordinary shares. The shares issued under the SPP will be offered at the placement price of $0.15 per share. The SPP will be capped at $15 million.
The placement, together with the SPP, will provide Andromeda the funds to meet the company's share of long lead time processing plant equipment purchases, continue product development in the areas of ceramic, paint and coatings and contribute to ongoing research and development.
Shares in Andromeda (ASX:ADN)
are trading 10 per cent lower at $0.16.