Placement to Sophisticated and Professional Investors OBJ Limited (ASX: OBJ) (Company) is pleased to announce that it has placed approximately 123 million fully paid ordinary shares at 1.5 cents per share (New Shares) to raise approximately $1.85m (before costs) to sophisticated and professional investors (Placement). Subscribers of New Shares will also receive two (2) new options to acquire fully paid ordinary shares in the Company for every five (5) New Shares subscribed for and allotted at no additional cost (New Attaching Options), resulting in approximately 49 million New Attaching Options being issued as well. The New Attaching Options are exercisable at $0.01 on or before 31 December 2014 and will (subject to satisfying the requirements for quotation) be traded under the existing ASX security code OBJOA, and be on the same terms and conditions as the Company’s existing quoted options expiring on 31 December 2014. Baker Young Stockbrokers Limited (Baker Young) acted as Lead Manager to the Placement. The Placement was heavily oversubscribed and the Company welcomes new institutional shareholders to its register. The funds raised from the Placement will be used to progress OBJ’s various programs including the Company’s own Bodyguard program and to ensure the Company is well capitalised for the advancement of those programs. The Company is excited by its Bodyguard project and views the additional funds as being crucial to the ongoing development and commercialisation of Bodyguard. The finalisation of this Placement concludes the Company’s present capital raising initiatives and ensures the Company is well positioned with all its various programs to maximise shareholder value. The Placement was made without disclosure to sophisticated and professional investors under section 708 of the Corporations Act 2001 (Cth). 49,333,333 New Attaching Options were issued under the Company’s 15% placement capacity under Listing Rule 7.1, and 123,333,333 New Shares were issued under the Company’s additional 10% placement capacity under Listing Rule 7.1A, which was approved by shareholders at the Company’s Annual General Meeting held on 26 November 2012. In accordance with the requirements of Listing Rule 3.10.5A, the following information is provided: • The dilution to existing shareholders of the Company, as a result of the issue of the New Shares was as follows: ABN 72 056 482 636 284 Oxford Street, Leederville 6007 Perth, Western Australia Telephone +61 8 9443 3011 Facsimile +61 8 9443 9960 www.obj.com.au o under Listing Rule 7.1, the number of New Attaching Options was 49,333,333, resulting in a dilution to existing shareholders of 3.7%; and o under Listing Rule 7.1A, the number of New Shares issued was 123,333,333, resulting in a dilution to existing shareholders of 9.4%. Accordingly, the total dilution to existing shareholders as a result of the Placement was 13.1%. Further details of the approximate percentage of the issued capital post the 7.1 and 7.1A placement held by the pre-placement security holders and new security holders are as follows: Pre-placement security holders who did not participate in the 7.1A placement 88.3% Pre-placement security holders who did participate in the 7.1A placement 7.7% Participants in the 7.1A placement who were not previously security holders 4% • The Company issued the New Shares and New Attaching Options as a placement under Listing Rule 7.1 and Listing Rule 7.1A and not as (or in addition to) a pro rata issue to all shareholders because it was considered to be the most efficient and expedient method for raising the funds to achieve its stated objectives. The Placement also allowed the Company to introduce a number of new institutional investors to its register. The Company recently conducted a pro-rata issue to all existing shareholders which closed on 29 May 2013. • There were no underwriting arrangements in place for the Placement. • The fees for Baker Young for its role as Lead Manager were 1% and Broker Handling Fees payable to Baker Young and Participating Brokers were 5%. - ENDS - For more information: OBJ Ltd: Mr Glyn Denison Director Telephone +618 9443 3011 Email [email protected] Web www.obj.com.au Baker Young Stockbrokers: Mr Dirk van Dissel Associate Director Telephone +618 8236 8888 Email [email protected] Web www.bakeryoung.com.au
OBJ Price at posting:
1.8¢ Sentiment: Hold Disclosure: Held
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