ASF Group (ASX:AFA) is raising a further $2.5 million through the placement of the remaining shortfall shares under its 1:10 non-renounceable pro-rata rights offer priced at $0.18 per share.
ASF shares last traded at $0.29, and have increased by 45% so far in 2015, which shows the benefits of a share buy-back program instituted by the company over the past couple of years.
The company signed a subscription agreement with a professional investor for the placement of the remaining 13,832,154 shares.
Shares to be issued under the final placement will be subject to an escrow period for 12 months from the date of issue.
ASF raised an initial $6.1 million under the rights issue in December and subsequently placed 5.56 million shortfall shares in February to raise a further $1 million.
The company had previously noted that proceeds from the offer will be used to:
- Fund investments in current portfolio assets, including engaging property development consultants;
- Investigate and advance business development opportunities for the Company, with the goal of creating value for shareholders; and
- Provide working capital to the company generally.
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