Ann: Trading Halt, page-74

A capital raise need not be a funds request to the market or shareholders.

Meaning of Material Capital Raise

A material capital raise typically refers to a significant fundraising effort undertaken by a company to secure substantial financial resources, often for specific purposes such as expansion, acquisition, or major project funding. The term “material” indicates that the amount being raised is large enough to have a meaningful impact on the company’s financial position and operations.

Understanding Capital Raising

Capital raising is a fundamental activity for businesses seeking to grow or stabilize their operations. It can be categorized into two main types: equity raising and debt raising. A material capital raise usually involves either issuing new shares (equity) or taking on significant debt obligations.

1. Equity Raising: This involves selling shares of the company to investors in exchange for capital. When a company conducts a material equity raise, it typically means that it is offering a substantial number of shares or at a significant valuation, which could dilute existing shareholders’ ownership but provides necessary funds for growth initiatives.

2. Debt Raising: This entails borrowing money through loans, bonds, or other forms of credit. A material debt raise would involve securing large amounts of financing that could affect the company’s leverage ratios and overall financial health. Companies may choose this route when they want to avoid diluting ownership but still need significant funds.

Purpose of Material Capital Raises

The reasons behind pursuing a material capital raise can vary widely:

• Expansion Projects: Companies may seek additional funds to finance new projects, enter new markets, or increase production capacity.
• Acquisitions: Significant capital may be required to acquire another business or assets that align with strategic goals.
• Operational Stability: In times of financial distress or uncertainty, companies might conduct a material capital raise to bolster their balance sheets and ensure operational continuity.

The decision to pursue such a raise often involves careful consideration of market conditions, investor sentiment, and the company’s long-term strategy.

I am with you Capt............ Targeted support from Strategic Partners is what this ANN is all about IMO.

With " Our key Indian life sciences customers " Serum Institute to India , are they locking in supply by a License. purchase/ investment