Equity Investment LGES and POSCO GEM 1ST FUND have agreed to invest US$15m in QPM by way of a subscription of ordinary shares. The issue price will be A$0.1364 per share, which represents a premium of 16.8% to the 1 month VWAP of QPM shares.
LGES will invest US$10.5m (99,235,889 QPM shares) and POSCO GEM 1ST FUND will invest US$4.5m (42,529,667 shares). Post completion of the transaction, the ownership interest of LGES and POSCO GEM 1ST FUND in QPM will be 7.5% and 3.2%, respectively. LGES and POSCO GEM 1ST FUND will be subject to a 12 month escrow on their shares.
As part of their investment consideration, extensive due diligence was carried out by LGES and POSCO GEM 1ST FUND on QPM and the TECH Project. This included a technical review of the TECH Project by RPM Global.
The equity investment by LGES and POSCO GEM 1ST FUND is conditional upon QPM shareholder approval. A notice of meeting for an Extraordinary General Meeting will be sent out shortly. The funds received from the equity investment will be used to advance the TECH Project, including bringing forward detailed design work which will facilitate earlier placement of long-lead time plant and equipment.
QPM Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
