Avenira Limited (ASX: AEV) (“Avenira” or “the Company”)”) has secured a Strategic Investment from its largest shareholder, Sichuan Hebang Biotechnology Corporation Limited (SHSE: 603077) (“Hebang”).
HIGHLIGHTS:
The Strategic Investment comprises:A$4.5 million 2-tranche Placement at an issue price of A$0.006 per new share, with Tranche 2 subject to shareholder approval and any other required regulatory approvals.Pending shareholder approval for Tranche 2 Hebang will provide an unsecured loan of the Tranche 2 proceeds.Funds from the Placement will be used for progressing the Yellow Phosphate study work, Lithium Ferro Phosphate study work and for general working capital.As part of the investment, Hebang has the right to appoint an Executive Chairman and two directors to the Board, as well as a Chief Executive Officer and Chief Financial Officer to the management team.
Strategic Investment
Tranche 1 Placement: Tranche 1 will raise A$1.7 million through the issue of 285,000,000 shares, at an issue price of A$0.006 per new share. These shares will be issued on or around 2 August under the Company’s existing Listing Rule 7.1 (223 million shares) and 7.1A (62 million shares) placement capacity (“Tranche 1”).Tranche 2 Placement: Tranche 2 will raise A$2.79 million through the issue of 465,000,000 shares at the same price as Tranche 1 (“Tranche 2”). As the issue of the Tranche 2 shares will mean Hebang has an interest in the issued capital of the Company of greater than 20%, shareholder approval pursuant to Item 7 of Section 611 of the Corporations Act (Cth) 2001 will be required for the issue of shares under Tranche 2. Tranche 2 is also subject to any other required regulatory approvalsUnsecured loan: Hebang will also provide an unsecured loan of the Tranche 2 placement proceeds pending shareholder approval and any other required regulatory approvals for the Tranche 2 placement. The terms of the loan are:Principal – $2.79 million;Repayment – Repayment of principal and interest upon the earlier of either the completion of Tranche 2 placement or 12 monthsInterest – 12% pa capitalised and payable on repayment of principal
The unsecured loan will be repaid from funds received from the Tranche 2 placement.
If the Shareholders Approval or any other regulatory approval required for Tranche 2 is not obtained by 31 October 2024, given the company’s history of raising capital to date, the directors are confident of the company’s ability to raise additional funds through a placement, rights issue, SPP, convertible note or other capital raising method previously utilized by the Company, when the unsecured loan is due for repayment, on or around September 2025.
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