Suvo Strategic Minerals Ltd (ASX:SUV) has closed its share purchase plan (SPP) significantly oversubscribed amid “exceptional” demand from existing shareholders, receiving $2.663 million worth of applications.
Initially offering $1.5 million at an issue price of $0.03 per share, the company increased the size of the SPP to $2 million in response to shareholder demand, resulting in a scaleback of $663,000.
Suvo directors balanced increasing the SPP amount to reflect the level of existing shareholder support with the ability to effectively deploy any additional acceptances to accelerate Suvo’s growth strategy.
It says that the additional funds raised will support the ramp-up of production at its 100%-owned Pittong Operation, west of Ballarat in Victoria, and accelerate the commercialisation of Suvo’s IP for a low-carbon geopolymer concrete.
The SPP complements the company’s recently completed share placement to new and existing sophisticated investors, which raised $2.5 million (before costs), also at an issue price of $0.03 per share.
“Strong endorsement of growth strategy”
Non-executive chairman Aaron Banks said: “The Suvo team has been humbled by the extraordinary show of shareholder support for our share purchase plan and we sincerely thank all those who participated.
"The number and value of applications is a strong endorsement of our growth strategy, positioning Suvo with a fortified balance sheet and unparalleled opportunity to accelerate our key initiatives.
“We look forward to updating the market as we progress towards our target of filling the remaining capacity at Pittong and capitalising on some exciting opportunities for our geopolymer concrete.”
Suvi anticipates that the SPP shares will be issued on March 1, 2024. A total of 66,666,667 new fully paid ordinary shares will be issued, representing approximately 8.2% of Suvo’s ordinary shares on issue prior to the SPP.