Rights Issue Update

On 17 July, details of the rights issue were posted - https://www.codaminerals.com/wp-content/uploads/2020/07/20200717_Coda_ANN_Results-of-Rights-Issue_Release.pdf

Just to remind us of what this was the Rights Offer:

Number of Shares held by Eligible Shareholders as at the date of this Prospectus 21,563,8178
Funds raised from the Offer (before costs) (assuming full subscription) $2,156,3819
Number of New Shares offered under this Prospectus 21,563,81710

This is what happened:

Number of new shares subscribed for by existing shareholders 10,117,162
Funds raised from the Rights Issue and Shortfall Offer $1,011,716

So the shortfall was 11,446,655 shares or ($1,144,665)

Its now up to the the Lead Manager to find buyers for the shortfall.

So based on Section 2.14 of the prospectus, Coda only have $5.095 million in committed funding (Cash plus Rights take up) with a planned spend of $4.641 million for the next 12 months. I think that plan will require a little pruning.

So in the past twelve months:

Delisted at 29 cents (after 10:1 consolidation) in July 2019
Buyback at 20 cents per share in March 2020
Rights Issue at 10 cents per share in July 2020

I think unless they can monetise Elizabeth Creek in the next 12 months, this one will be cooked in the next 12-24 months.

I have officially written this off in my mind.