AFR: Petra Capital launches $10m raising for forestry owner
ASX-listed Kangaroo Island Plantation Timbers Ltd is seeking to raise $10 million from new and existing investors.
The company’s broker, Petra Capital, launched the raising on Thursday morning.
According to terms sent to potential investors, KPT will issue 4.5 million new shares at $2 each in a placement and seek to raise another $1 million in a share purchase plan.
The offer was priced at a 14.9 per cent discount to the last close.
“The proceeds from the Placement and SPP will primarily be used to fund additional costs of approvals, pontoon enhancements, pre-approval engineering studies and increased contingency,” the term sheet said.
KPT is a listed timber company. It had a $120 million market capitalisation prior to the raising and its biggest shareholders include Soul Patts/Brickworks, Paradice Investment Management and Samuel Terry Asset Management.
KPT shares went into a trading halt on Thursday morning.
Source: The Australian Financial Review
