What made Syrah Resources and Tatts Group derail on ASX?
Successful completion of institutional placement: Syrah Resources plunged 7.6% on September 21, 2017 while the group resumed trading on an “ex-entitlement” basis and announced about successful completion of its institutional placement and the institutional component of its 1 for 10.5 pro rata accelerated non-renounceable entitlement offer. The group has been able to raise A$74 million through placement and institutional entitlement offer. The group stated that the placement was oversubscribed and the institutional entitlement offer received a high level of support with a take up rate of approximately 91%. However, SYR was unable to meet the target of $110 million underwritten capital raising as indicated earlier. The group will open its retail entitlement offer on Monday 25, September 2017 and the same will close on Thursday, 5 October 2017. Eligible retail shareholders will be invited to participate in the retail component of the 1 for 10.5 pro rata accelerated non-renounceable entitlement offer under which new shares will be offered at A$3.38 per share (same as the Institutional Entitlement Offer). This move was undertaken to support the ramp up of Balama graphite project and Battery Anode Material (BAM) strategy; and was found to be the preferred way to raise capital instead of debt funding that emerged expensive for the group.
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