Papyrus Australia Ltd (PPY), a company focused on producing environmentally friendly products from banana tree waste, has announced a capital raising of $262,000. The funds are being raised through agreements with new and existing sophisticated shareholders via a placement of listed shares and unlisted options. The company is aiming to utilise the raised capital for working capital and research and development (R&D) activities within Australia.
The placement will involve the issue of 26,200,000 shares at a price of $0.01 per share. Papyrus Australia expects the securities to be issued following the clearance of funds into the company’s bank account, anticipated to occur on or before Thursday, August 7th. An Appendix 3B related to the capital raising was also released to the market on August 4th.
In addition to the shares, participating sophisticated investors will receive one unlisted option for every two shares subscribed. A total of 13,100,000 options will be issued, each with an exercise price of $0.02. These options will have an expiry date of 18 months from the date of issue.
The capital raising is being conducted under the company’s existing allowance in accordance with ASX Listing Rule 7.1, as approved by the board.
