Australia-based Ensurance Ltd. will carry out a non-renounceable pro rata entitlement offering to raise up to approximately A$3.79 million.
Under the offering, eligible shareholders may apply for 4 new shares for every 5 shares held at an issue price of 1.5 Australian cents per new share. Subscribers will also receive 1 free-attaching option for every four new shares issued, exercisable at 2 Australian cents per free-attaching option.
The company intends to use the funds raised to continue building out its U.K. operations, which will include the hiring of additional underwriting staff, investment in a new IT system and opportunistic acquisitions of new insurance products. The proceeds will also be used for general working capital.
Tony Wehby, nonexecutive director at Ensurance, intends to subscribe for some of the shortfall arising from the offering. The company said it will seek prior shareholder approval for the issue of any shortfall to Wehby.
Blue Ocean Equities Pty. Ltd. is the underwriter, lead manager and broker for the offering, which is also subwritten by participants including Executive Chairman Tony Leibowitz and nonexecutive director Adam Davey.