Perth, Aug 27, 2009 (ABN Newswire) - Automotive Technology Group Limited (ASX:ATJ) is pleased to announce it has entered into a Placement and Underwriting Agreement with an independent party to raise up to A$6,255,988. The Underwriting relates to an Entitlement Offer of a one for one nonrenounceable rights issue of fully paid ordinary shares in the Company at an issue price of A$0.05 per share to raise up to approximately A$5,830,988. The Company will no longer proceed with its previously announced Entitlement offer at 2.5 cents.
Automotive Technology Group Limited ("ATG" or the "Company") Executive Director - Corporate Steve Apedaile said "The funding arrangements the Company has entered into will provide the necessary capital for the Company to continue to develop its technology and to provide additional working capital"
The Agreement
The Company and Michael and Megan Wilson (Wilson) jointly agree to the following:
1. Wilson will underwrite up to 20 million fully paid ordinary Shares at A$0.05 per Share of the Shortfall from the Non-renounceable Entitlement Issue. The underwriting commitment is subject to the Company releasing the documentation for the rights issue by 28 August 2009. An underwriting fee of 5% of the amount underwritten is payable;
2. The Company will immediately place to Wilson 8,500,000 fully paid ordinary shares in the Company at an issue price of A$0.05 per Share to raise A$425,000. This issue falls within the Company's 15% capacity and does not require Shareholder Approval.
Michael Wilson is a Perth based businessman operating a successful manufacturing business that supplies the oil and gas resource sector.
Automotive Technology Group Limited
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