- Astron Corporation (ASX:ATR) secures a firm commitment for a $10 million investment to support further development of its Donald project in Victoria
- This investment comes from the company’s second-largest shareholder, Mr Tan Ruiqing
- A total of 17,857,144 new CDIs are being issued at an issue price of 56 cents each
- Mr Ruiqing will own 30,820,107 Astron Corporation CDIs, representing an 18.5 per cent ownership stake in the company
- ATR last traded at 49 cents
Astron Corporation (ASX:ATR) has secured a firm commitment for a $10 million investment to support further development of its Donald project in Victoria.
This investment comes from the company’s second-largest shareholder, Mr Tan Ruiqing, at a price of 56 cents per CDI, representing a premium of 7.7 per cent over the closing price of Astron shares on November 2, 2023, which was 52 cents.
Mr Ruiqing is the former vice chairman and one of the founders of Lomon Billions Group, a leading high-performance titanium dioxide pigments and zirconium chemicals manufacturing company.
Key details of the placement
The placement will be executed in three separate tranches:
- By November 24, an initial $3,000,000 (equivalent to 5,357,143 CDIs) will be settled.
- By January 24, 2024, an additional $3,000,000 (5,357,143 CDIs) will be settled.
- By March 24, 2024, the remaining $4,000,000 (7,142,857 CDIs) will be settled, contingent upon approval from the company’s security holders.
A total of 17,857,144 new CDIs will be issued, raising $10.0 million before expenses.
Upon the completion of the final tranche in March 2024, Mr Ruiqing will own 30,820,107 Astron Corporation CDIs, which will represent an 18.5 per cent ownership stake in the company.
ATR last traded at 49 cents.