Ann: AVL Completes $8.7m Placement, page-2

Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL” is pleased to announce that it has received firm commitments for the placement of 348,000,000 ordinary fully paid shares (Shares) in the Company at a price of $0.025 each, to raise $8.7 million before costs (Placement).

For every Share issued under the Placement, one (1) free attaching listed option will be issued (Option). The Options will be in the same class as the Company’s existing listed options (ASX code: AVLOA) with an exercise price of $0.025 and expire on 18 December 2022.

The Shares were placed to institutional and sophisticated investors that qualify under section 708 of the Corporations Act. The capital raising was managed by 180 Markets. The Placement attracted interest from both existing shareholders and new investors, including new institutional cornerstone investors.

The offer was strongly oversubscribed, with over $14M of bids received.
The 348 million shares represent approximately 12% of the Company’s existing Shares on issue.

180 Markets will be paid a standard 6% fee on all funds introduced and receive 25M Options.

The Options to be issued to 180 Markets will be subject to shareholder approval. The offer price of $0.025 represented a 11% discount to the 15-day VWAP of $0.028 and a 13.9% discount to the last closing price of $0.029. The issue of Shares and Options is not subject to shareholder approval as the issuance will comprise 56,000,000 Shares and 348,000,000 Options under the Company’s ASX Listing Rule 7.1 issue capacity and 292,000,000 Shares under the Company’s ASX Listing Rule 7.1A issue capacity.