Newfield Resources Limited (ASX: NWF) has announced an A$16.98M equity issue, including the conversion of an A$13M loan to equity, and an A$2M share placement to Mr. Rustiyan Oen.
Karl Smithson, executive director, said, “We are incredibly appreciative of Wonder Holdings’ long-term support for Newfield by agreeing to convert the outstanding balance of the loan and interest to equity. We are also very grateful to have the continuing support of Mr. Oen through the placement.”
Referring to the A$15M unsecured loan from Wonder Holdings Pty Ltd, announced 14 March 2023, the company has confirmed that the parties have agreed to repay A$13.86M earlier than originally stated through the conversion into fully paid ordinary shares in Newfield. The company expects to draw on the remaining balance of A$1.44M this quarter.
Additionally, the company will issue 92,424,094 conversion shares at a price of A$0.15 per share, pursuant to its existing 15% placement, and the conversion shares will be equal to the existing fully paid ordinary shares.
This loan conversion price of A$0.15 per share represents a 11.3% discount to the 15-trading day VWAP of A$0.1691 per share, and is equal to the last closing price of A$0.15 per share on 13 September 2023.
Once complete, Wonder Holdings’ shareholding will increase to 92,455,344 shares, representing an approximately 10.48% of the expanded issued capital after the placement.
Further, Newfield has entered into a binding agreement with Mr. Rustiyan Oen, who is the company’s largest shareholder, for a private placement of shares to raise US$2M.
The company will issue 20,752,273 fully paid ordinary shares at an issue price of A$0.15 per share, and the placement is expected to be completed this month. Proceeds of the placement will be used to fund the company’s working capital requirements.
On completion of the combined placement and loan conversion, Mr. Oen’s shareholding will decrease from 24.68% to 23.86%.
To find out more, please visit www.newfieldresources.com.au
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