It’s been a lean few weeks for stockbrokers’ corporate teams, who have had to sit on their hands amid the wider market wobbles and uncertainty ahead of the upcoming election.
Junior resources play Australian Vanadium Ltd (AVL) was trying to help break the drought on Wednesday morning, tapping Canaccord Genuity’s desk to line up investors for an equity raising.
The $200 million listed AVL was seeking to raise $22.5 million at 4.7¢ a share. The deal was split into a $15 million placement and a targeted $7.5 million share purchase plan.
Funds raised would be used to fund ongoing development of key downstream markets, according to terms sent to investors on Wednesday morning.
Its broker was keen to have the placement wrapped up by Wednesday afternoon.
While the deal’s relatively small, it will be watched closely by equity capital markets teams. Raising levels have dropped off considerably this month, with investors not showing the same level of appetite for deals.
AVL’s raising, which potential investors were told had been cornerstoned by offshore funds, shows there’s still life in the battery materials sector, even in a wobbly equity market.
AVL Price at posting:
5.7¢ Sentiment: Buy Disclosure: Held
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