To Raise Up To $17 Million To Accelerate Perth Project
Sydney, Nov 3, 2014 AEST (ABN Newswire) - Indoor Skydive Australia Group Limited (
ASX:IDZ) (ISA Group) today announced an equity capital raising of up to $17 million to support the acceleration of the Australian roll out plan through the development of our Perth Facility in parallel with the Gold Coast Facility and to refinance the current convertible note which partially funds the development of the Gold Coast Facility.
Key Points
- ISA Group to raise up to $17 million in equity capital through an institutional placement (Institutional Placement) and rights issue (Rights Issue) (together, the Offer).
- The Institutional Placement has been successfully completed and raised $11.1 million through the issue of 22,124,845 fully paid ordinary shares (Shares) at $0.50 per Share pursuant to Listing Rules 7.1 and 7.1A.
- Investor interest in the Institutional Placement was strong and ISA Group welcomes Acorn Capital to our register.
- The Rights Issue is a non-underwritten, non-renounceable 2 for 15 pro rata Rights Issue to raise up to $5.9 million at $0.50 per new Share. Shares issued under the Institutional Placement will not be eligible to participate in the Rights Issue.
- The Rights Issue will enable all eligible shareholders at the record date to participate in the Offer.
- Funds raised will be used to support the construction of a new facility in Perth, Western Australia which has been accelerated for development in parallel with the Gold Coast Facility.
- Funds raised will also be used to partially fund the Gold Coast Facility through the refinancing of the current convertible note facility.
- Corporate capabilities have been strengthened to complete the Australian tunnel roll out and support the investigation of opportunities globally with a particular focus on South East Asia.
Institutional Placement
ISA Group has today come out of a voluntary trading halt which allowed Veritas Securities Limited (Veritas), the Lead Manager of the Offer, to conduct an Institutional Placement process. The Board is committed to engaging with institutional investors as it views the presence of institutional investors on our register as an important element for the medium term expansion of ISA Group and supporting ISA Group's liquidity.
The Institutional Placement was strongly supported by new and existing ISA Group institutional investors and raised $11.1 million through the placement of 22,124,845 Shares at an offer price of $0.50. The offer price under the Institutional Placement of $0.50 per new Share represents a discount of 16.5% to the 30 day VWAP to 29 October 2014.
Rights Issue
Under the Rights Issue, eligible shareholders at the record date of 10 November 2014 at 7pm (Sydney time) (Record Date) are able to subscribe for 2 new Shares for each 15 Shares held at an offer price of $0.50 (being the same as the offer price for the Institutional Placement). Eligible shareholders can choose to take up their entitlement in full, in part or not at all. They may also apply for additional shares in excess of their entitlement (Additional Shares). Additional Shares will only be available where there is a shortfall between applications received from eligible shareholders and the number of new Shares to be issued under the Rights Issue and at the discretion of the ISA Group Board. Additional Shares will be issued at the offer price of $0.50 per new Share.
Eligible shareholders are those shareholders who, among other things, have a registered address in Australia or New Zealand on the Record Date.
ISA Group continues to value the ongoing support from it's shareholder base and considers the Placement and Rights Issue as the most appropriate processes to enable shareholders to participate in the capital raise.
The offer price under the Rights Issue of $0.50 per new Share represents a discount of 16.5% to the 30 day VWAP to 29 October 2014 and is equal to the offer price under the Institutional Placement.
Shareholder approval is not required in relation to the Offer.
Purpose of the Offer
The funds raised under the Offer will be used to support the acceleration of the development of the Perth Facility and to partially fund the Gold Coast Facility through the refinancing of the current convertible note with Birkdale Holdings (QLD) Pty Ltd (Birkdale).
ISA Group continues to focus on its Australian roll out program and is now in a position to accelerate the Perth Facility for development in conjunction with the Gold Coast Facility. An offer to lease has been entered into for the preferred site and design of the facility is underway. It is anticipated that the Perth Facility will comprise a 14ft glass flight chamber catering to the professional market as well as first time flyers. The facility will also provide for associated flyer amenities to complete the flight experience. The facility will be positioned to take advantage of the strong military presence in Perth and the FIFO commuter behaviours.
To view the full placement details, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-IDZ-826880.pdf
About Indoor Skydive Australia Group Ltd
Indoor Skydive Australia Group (
ASX:IDZ) was established on 04 Nov 2011 as the parent company to facilitate a number of indoor skydiving facilities to cross our region in the next 3-5 years. These facilities allowing human flight within a safe environment are currently used by tourists, enthusiasts and military throughout the world including the Australian Military and active Skydivers. Flexible operating hours, low overheads and proven technology are just a few of the highlights that support the company’s business model.
| ||
|
