RBR Group Limited (ASX: RBR) has announced it has successfully secured $365,000 in new capital through a share placement. The company, which specialises in delivering skilled labour to site every day, confirmed receiving firm applications for the full amount. This capital raising saw significant cornerstone support, including a $150,000 commitment from major shareholder Paul Natoli, the Chief Executive Officer of the Western Australia-based Grounded Group. Grounded Group is a civil engineering and construction services provider with specific expertise in the supply and construction of remote area accommodation facilities for the resources, tourism, and government sectors.
The placement involves the issue of 20.3 million ordinary shares at an issue price of $0.018 per share. Applicants will also receive one new option for every two shares subscribed under the placement, exercisable at $0.03 each. The funds raised are intended to support accelerated activities in Group tender applications and preparation for anticipated contract awards in Mozambique. Additionally, the new capital will be utilised for the enhancement of operational management, corporate profile, web presentation, investor and customer relations, and general working capital requirements. The placement utilised the company’s existing capacity under ASX Listing Rules 7.1 and 7.1A, with interest received reportedly exceeding the capacity to allot without further shareholder approval.
Executive Chair Ian Macpherson commented on the placement, stating that Mr Natoli’s further commitment follows continued discussions and a review of respective corporate activities, reflecting a mutual desire to enhance their profiles in Australia and Africa. Mr Macpherson also noted the board is encouraged by the level of interest in the issue and will continue to engage with interested parties as it progresses plans to strengthen its balance sheet and restructure existing debt facilities to secure more structured project debt.
