Bounty withdraws capital raising

UNDERGROUND coal contractor Bounty Mining has withdrawn its public offer to raise $4.5 million after the minimum subscription amount under the prospectus was not reached.
Bounty withdraws capital raising Bounty withdraws capital raising Bounty withdraws capital raising Bounty withdraws capital raising Bounty withdraws capital raising

 

Lou Caruana

The company is now in discussions with interested parties regarding other financing options as it seeks a relisting on the Australian Securities Exchange, it said in a statement.

“Developments since the preparation of the prospectus have included a general fall in market sentiment and specific depression in the values of the peer coal industry stocks used for comparison pricing,” the company said.

“It is possible that future funding will be obtained at a price below that in the prospectus. The failure of the capital raising under the prospectus is expected to cause a delay to the company’s plans for a resumption of quotation of its securities on the ASX.”

On August 18 Bounty Mining lodged a prospectus with ASIC for an offer of up to 150,000,000 shares at an issue price of 3c per share in order to raise up to $4,500,000.

On September 16, the company advised that the offer had been extended until September 26 and on that day, it again extended the offer until October 10.

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