Polymetals’ Ununderwritten $3.2M SPP Poses Uptake Risk After $35M Placement

Polymetals Launches Share Purchase Plan

Polymetals Resources Ltd (ASX: POL) has officially opened its Share Purchase Plan (SPP), providing eligible shareholders the opportunity to purchase additional shares at a fixed price of $0.80 each. This initiative follows the company’s recent institutional placement, which successfully raised $35 million through the issuance of 43.75 million new shares.

The SPP is designed to raise up to $3.2 million and is available exclusively to shareholders registered by the record date with addresses in Australia or New Zealand. Importantly, the plan is not underwritten, meaning the final amount raised will depend entirely on shareholder participation.

Details and Eligibility

Eligible shareholders can subscribe for up to $30,000 worth of new shares without incurring brokerage or transaction fees. The offer is limited to those not located in the United States and who are not acting on behalf of U.S. persons, reflecting regulatory compliance with international securities laws.

Applications can be made online via BPAY or, for New Zealand shareholders, via EFT following specific instructions. The deadline for applications and payments is 5:00 pm Sydney time on the closing date, emphasizing the company’s structured approach to capital raising.

Strategic Implications

This SPP complements the earlier $35 million placement, which was targeted at sophisticated and professional investors. Together, these capital-raising efforts signal Polymetals’ intent to strengthen its balance sheet and support ongoing exploration and development activities within the resources sector.

Executive Chairman David Sproule encourages shareholders to carefully review the offer booklet and seek professional advice if necessary, underscoring the company’s commitment to transparency and shareholder engagement.

Regulatory and Market Considerations

The company has been clear that the SPP shares will not be offered or sold in the United States, adhering strictly to securities regulations. This limits the investor pool but ensures compliance with international legal frameworks.

While the SPP is not underwritten, the fixed issue price and absence of transaction costs may incentivize participation, potentially enhancing liquidity and shareholder base diversity. Market watchers will be keen to observe uptake levels and any subsequent share price movements.