Lepidico Ltd. plans to raise approximately A$7.9 million from an entitlement offer on the basis of 1 new share for every 7 existing shares, according to a Sept. 3 release.
A maximum of 417,877,165 new shares at 1.9 cents apiece will be issued in the offering. The price represents a 24% discount to the stock's closing price of 2.5 cents on Aug. 31.
Shareholders will also receive 1 free attaching option for every 2 new shares, the company said.
Proceeds from the offer will be used to fund the construction and operation of Lepidico's L-Max pilot plant as well as associated development activities, including a scoping study. Funds will also be earmarked for drilling on its exploration prospects at Alvarroes in Portugal and Youanmi in Western Australia.
Lepidico expects to close the offer on Sept. 25.