Eclipse Metals to "reward shareholders" through entitlement issue of options
Funds of up to $382,791 raised from the pro-rata non-renounceable entitlement issue of options will be used for working capital.
The purpose of the offer is to reward shareholders for their loyalty.
Eclipse Metals (ASX:EPM) Ltd board of directors has approved a pro-rata non-renounceable entitlement issue of options to shareholders to raise up to $382,791 before costs.
The purpose of the offer is to reward shareholders for their loyalty, with the directors deciding to structure the offer as a non-renounceable entitlement issue.
Eclipse’s reasoning behind this is to provide a cost base for tax purposes in respect of the options offered under the offer, cover the expenses of the offer and to provide the company with additional working capital.
One option for every 10 shares
Under the rights issue, shareholders will be able to subscribe for one option for every 10 shares held by those shareholders registered as at the record date of August 20, 2021, at an issue price of $0.002 per option to raise up to $382,791 before costs, being up to around 191,395,687 options.
Each option will be exercisable at $0.05 on or before the expiry date, being three years from the date of
issue.
Rights issue not underwritten
Eclipse will not be extending this offer to overseas shareholders, other than New Zealand resident shareholders.
It is deemed unreasonable given the company size and holder spread to attempt to delay the Rights Issue in the case of overseas holders.
The rights issue is not underwritten.
EPM Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
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