Published On: September 6th, 2023
VRX Silica Limited (VRX or Company) recently announced a $1.5 million Share Purchase Plan for eligible VRX shareholders (SPP Offer) in conjunction with a $1.5 million placement to professional and sophisticated investors (Placement), for an aggregate $3 million capital raising.
The Placement has completed and the SPP Offer is now open.
Under the SPP Offer, Eligible Shareholders are VRX shareholders who:
- held VRX ordinary shares at 7:00pm (AEST) on 25 August 2023 (Record Date);
- have a registered address in Australia or New Zealand; and
- are not located in the United States, and not acting for the account or benefit of persons in the United States.
Eligible Shareholders will be able to apply for new ordinary shares (New Shares) at the issue price of $0.12 per New Share, with one free attaching option exercisable at $0.18 each on or before 31 August 2025 (New Option) for every two New Shares issued, without paying any brokerage. This is the same price paid by participants under the Placement.
Eligible Shareholders may apply for New Shares in the following increments, from a minimum of $2,000 up to a maximum of $30,000, with fractional entitlements rounded up:
| SPP Offer Application Amount | No. of New Shares that may be purchased | No. of Free-Attaching Options | |
|---|---|---|---|
| Offer A | $30,000 | 250,000 | 125,000 |
| Offer B | $25,000 | 208,334 | 104,167 |
| Offer C | $20,000 | 166,667 | 83,334 |
| Offer D | $15,000 | 125,000 | 62,500 |
| Offer E | $10,000 | 83,334 | 41,667 |
| Offer F | $7,500 | 62,500 | 31,250 |
| Offer G | $5,000 | 41,667 | 20,834 |
| Offer H | $2,000 | 16,667 | 8,334 |
Participation in the SPP Offer is optional.
Depending on applications received, the Company will undertake a scale back so that no more than $1,500,000 is raised under the SPP Offer. Scale back decisions are made at the discretion of the VRX Board and are final. In the case of a scale back, an Eligible Shareholder may receive less New Shares than they applied for and, should this occur and subject to the SPP Offer terms and conditions, VRX will refund any excess application funds.
The SPP Offer for the New Shares is subject to the terms and conditions set out in the SPP Offer Booklet. The SPP Offer for the attaching New Options is subject to the terms and conditions set out in a prospectus issued under section 713 of the Corporations Act 2001 (Cth) (Prospectus). A copy of the SPP Offer Booklet and the Prospectus, along with instructions on how to apply for New Shares and attaching New Options, and submit payment, is available online at www.computersharecas.com.au/vrxspp. Paper copies may be requested from the Company however eligible shareholders are strongly encouraged to apply online given potential delays in posting.
How to access a copy of the SPP Offer Booklet, Prospectus and Personalised Application Form
- ONLINE The SPP Offer Booklet, the Prospectus and personalised Application Form are available to view online at computersharecas.com.au/vrxspp. To access this website, Eligible Shareholders will need their SRN or HIN for their holdings.
- PAPER A paper copy of the SPP Offer Booklet, the Prospectus and personalised Application Form may be requested by contacting Computershare, the Company’s share registry, from 8.30am to 5.00pm AEST, Monday to Friday, on 1300 850 505 (within Australia) or +61 3 9415 4000 (outside Australia)
The SPP Offer is scheduled to close at 5:00pm (AEST) on 22 September 2023.
Application and payment must be received before this time.
Key Dates*
| SPP Record Date (7.00pm AEST) | Friday, 25 August 2023 |
| Capital raising announced to ASX | Monday, 28 August 2023 |
| SPP Offer Booklet lodged with ASX Options Prospectus lodged with ASIC and ASX Opening Date of SPP Offer and SPP Option Offer Letters sent to Eligible Shareholders | Monday, 4 September 2023 |
| Closing Date of SPP Offer and SPP Option Offer (5.00pm AEST) | Friday, 22 September 2023 |
| Announcement of results of SPP | Thursday, 28 September 2023 |
| Issue of New Shares and New Options under SPP Trading in New Shares issued under SPP commences | Friday, 29 September 2023 |
* These times and dates are indicative only and may change without notice.
The Directors reserve the right to vary these dates, including the closing dates, without notice.
If you have any questions in relation to the SPP Offer please contact Computershare, the Company’s share registry, from 8.30am to 5.00pm AEST, Monday to Friday, on 1300 850 505 (within Australia) or +61 3 9415 4000 (outside Australia) before the Closing Date.
About VRX Silica Limited
VRX Silica Limited (ASX: VRX) is the most advanced pureplay silica sand company listed on the ASX, developing its 100% owned silica sand projects at Arrowsmith (North, Brand and Central), Muchea and Boyatup in Western Australia.
Silica sand is the most used commodity on the planet after air and water. It is the main ingredient in all types of glassmaking, including specialty solar panel and high-tech glass, and foundry casting. It is a finite resource that is running out, with the Asia-Pacific region experiencing an ever-growing supply shortfall that is driving up prices.
Arrowsmith is located 270km north of Perth. Arrowsmith North boasts a minimum 25-year mine life capable of producing more than 2Mt tonnes per year of high-grade (99.7% SiO2)* silica sand for export to the foundry, container glass and flat glass markets in Asia, with permitting well advanced, and will lead production. Muchea, located 50km north of Perth, is an ultra-high-grade (99.9% SiO2)* silica sand project capable of producing sand required for ultra-clear glass for solar panels and other high-tech glass applications. Boyatup, located 100km east of Esperance, is under development and capable of producing sand for the glass market.
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