Successful Completion of Oversubscribed Share Purchase Plan
Successful Completion of Oversubscribed
Share Purchase Plan
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
Management to Host Investor Webinar to
Outline its Plans and Milestones for 2024
PERTH, Australia
,
May 27, 2024
/CNW/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX:
HHLKF) ("Hot Chili," or the "Company") advises that further to its announcement on
21 May 2024
regarding the early closure of its Share Purchase Plan ("SPP"), the Company is pleased to provide
shareholders with the results of the SPP and some further information on the scale-back
methodology and expected processing dates for refunds.
The SPP was strongly supported by eligible shareholders and applications received were well above
the intended raise amount of
A$5 million
. Close to 700 applications to participate in the SPP at an
issue price of
A$1.00
, being the same price as the recently closed private placement to institutional,
professional and other investors completed on
9 May 2024
(the "Placement"), were received.
Given the overwhelming response to the SPP, the Board of Directors has exercised its discretion
under the terms of the SPP to increase the SPP offer to
A$7 million
, from the
A$5 million
originally
targeted.
Managing Director & CEO
Christian Easterday
commented, "We are extremely happy with how our
capital raising efforts have been executed and I would like to thank all our existing shareholders for
their overwhelming support in the SPP. I would also like to welcome several of our new institutional
shareholders from around the globe who have thrown their support behind the Company to develop
the Costa Fuego copper project in
Chile
. Costa Fuego is one of only a few large-scale copper
projects in the development pipeline with near term production timelines, and this additional growth
capital will assist Hot Chili in delivering this project to the market for its shareholders at a time when
the world is in desperate need for new production to come online."
In accordance with the terms of the SPP, the Company conducted a scale-back of applications with
the number of shares capped at 7,000,000 and totalling
A$7 million
before costs. As advised in the
offer document for the SPP dated
10 May 2024
, the scale-back methodology will be conducted at
the directors' discretion.
A scale-back has been applied, based on amounts applied for under the SPP, rounded to reflect the
7,000,000 shares to be issued under the SPP offer. As a result, shareholders who applied to
participate in the SPP will receive the following application amount they applied for:
Application
parcels
% of parcel as valid application after
scale back
Parcel Shares to
be issued
$1,000
100 %
$1,000
1,000
$2,000
100 %
$2,000
2,000
$5,000
100 %
$5,000
5,000
$10,000
100 %
$10,000
10,000
$15,000
100 %
$15,000
15,000
$20,000
82.5 %
$16,500
16,500
Application
parcels
% of parcel as valid application after
scale back
Parcel Shares to
be issued
$25,000
71.5 %
$17,875
17,875
$30,000
64.2 %
$19,259.87
19,259
The updated timetable for the SPP is as follows:
Event
Indicative Date
SPP offer closes (5.00pm (AWST))
Tuesday, 21 May 2024
SPP results announced to ASX
Monday, 27 May 2024
Issue of Shares under SPP
Monday, 27 May 2024
Quotation of SPP Shares on ASX commences
Tuesday, 28 May 2024
Dispatch of Holdings Statements
Thursday, 30 May 2024
Refund of Monies
Monday, 3 June 2024
The Board would like to thank again all shareholders who participated for their continued support.
The Company's Share Registry have advised that the issue and allotment has been completed.
Excess and invalid application monies (in the amount of
A$2.75 million
) will be refunded to applicants
without interest and are expected to be processed by the Company's Share Registry on Monday
3
June 2024
. If shareholders have not provided their nominated bank account details, their refund will
be received via cheque, mailed in the post to the relevant registered address as shown in the share
register.
The SPP was underwritten by Veritas Securities Limited, which, in connection with the SPP,
received a cash commission of
A$360,000
, and, subject to the approval of Hot Chili shareholders in
accordance with ASX Listing Rule 7.1, will receive 420,000 non-transferable and unlisted options in
the Company exercisable to acquire one ordinary share of the Company at a price of
A$1.50
per
share on or before the date that is 24 months following the issue date of the options.
The shares issued under the SPP are not subject to a hold period pursuant to applicable Canadian
securities laws. The SPP and the Placement remain subject to the final acceptance of the TSXV.
Further to its announcements dated
1 May 2024
,
6 May 2024
and
9 May 2024
, the Company has
raised a total of approximately
A$31,900,000
through the issuance of an aggregate of 31,900,000
shares under the Placement and the SPP, representing a total upsize of 2,040,000 shares from the
proposed capital raising announced on
1 May 2024
.
If shareholders have any enquiries in relation to the SPP allocation or the status of their returned
application monies, please call the Hot Chili limited Information Line on 1300 850 505 (within
Australia
or + 61 3 9415 4000 (outside of
Australia
).
An Appendix 2A follows for immediate release.
Investor Webinar
30 May 2024 at
9.00 am
AWST (
11am
AEST) (for Australian Audience) and
29 May 2024
9.00 pm EST
(for North American audience)
The Company will be hosting a webinar to discuss the recent capital raise and to walk through the
next key milestones and strategy for the Company in the development of Costa Fuego. Hot Chili's
Chairman Dr
Nicole Adshead-Bell
and its Chief Executive Officer and Managing Director
Christian
Easterday
look forward to hosting the call, which will also include a Q&A session. Please register in
advance for this webinar using the link below:
https://us02web.zoom.us/webinar/register/WN_OsMpGPdFRF-7GBVKc5erOg
After registering, you will receive a confirmation email containing information about joining the
webinar.
This announcement is authorised by the Board of Directors for release to ASX and TSXV.
Hot Chili's Managing Director and Chief Executive Officer Mr
Christian Easterday
is
responsible for this announcement and has provided sign-off for release to the ASX and
TSXV.
For more information please contact:
Christian Easterday
Managing Director – Hot Chili
Tel: +61 8 9315 9009
Emai
.au
Penelope Beattie
Company Secretary – Hot Chili
Tel: +61 8 9315 9009
Emai
.au
Harbor Access
Investor & Public Relations (Canada)
Email:
graham.farrell@harbor
-access.com
Email:
jonathan.paterson@harbor
-access.com
or visit Hot Chili's website at
www.hotchili.net.au
US Securities Laws
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall
there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful, including any of the securities in
the United States
. The securities have not been
and will not be registered under the 1933 Act or any state securities laws, and may not be offered
or sold within
the United States
unless registered under the 1933 Act and applicable state securities
laws, or an exemption from such registration requirements is available.
Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this news release. No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
SOURCE
Hot Chili Limited
View original content:
http://www.newswire.ca/en/releases/archive/May2024/27/c8226.html
%SEDAR: 00053528E
CO: Hot Chili Limited
CNW 07:05e 27-MAY-24