Sparc Technologies has launched a Share Purchase Plan offering eligible shareholders the chance to buy new shares at a 28.6% discount, aiming to raise up to $500,000 to fund key growth initiatives.
- SPP offers up to A$30,000 per eligible shareholder at A$0.15 per share
- Price represents a 28.6% discount to last close and 16.8% to 5-day VWAP
- Maximum raise capped at A$500,000 with potential scale back
- Proceeds earmarked for ecosparc® commercialisation, Sparc Hydrogen, R&D, and working capital
- Offer excludes US persons and closes 29 May 2025
Sparc Technologies Launches Discounted Share Purchase Plan
Sparc Technologies Limited (ASX: SPN) has announced a Share Purchase Plan (SPP) aimed at raising up to A$500,000 by offering eligible shareholders the opportunity to purchase new shares at a discounted price of A$0.15 each. This price marks a significant discount of approximately 28.6% to the last trading price and 16.8% to the five-day volume weighted average price (VWAP) prior to the offer announcement.
The offer is open to shareholders registered as of 7:00pm AEST on 30 April 2025 with addresses in Australia or New Zealand, excluding US persons due to regulatory constraints. Eligible shareholders can subscribe for up to A$30,000 worth of shares, with fixed parcel options ranging from A$1,000 to A$30,000, equating to between 6,667 and 200,000 new shares respectively.
Strategic Use of Funds to Support Growth
The capital raised through the SPP will be directed towards several strategic priorities. These include advancing the commercialisation of Sparc's ecosparc® technology, supporting investments in Sparc Hydrogen, funding research and development and patenting activities, and bolstering general working capital. This allocation underscores the company's commitment to innovation and expansion within the clean technology sector.
The offer is non-renounceable, meaning shareholders cannot transfer their rights to subscribe to others, and is subject to a scale back mechanism should applications exceed the maximum raise. The Board retains discretion to accept oversubscriptions up to the cap and to scale back applications to ensure compliance with ASX Listing Rules and the Corporations Act.
Offer Timeline and Participation Details
The SPP opened on 8 May 2025 and will close at 5:00pm AEST on 29 May 2025. New shares are expected to be issued on 5 June 2025 and commence trading on the ASX from 6 June 2025. Shareholders wishing to participate can apply online via the dedicated offer website or by submitting a paper application form, with payment options including BPAY® and electronic funds transfer.
Managing Director Nick O’Loughlin encourages shareholders to carefully consider the offer terms and seek independent financial advice if uncertain. The discounted issue price reflects the company's strategy to incentivize shareholder participation while balancing capital raising needs against market conditions.
Regulatory Compliance and Investor Considerations
The SPP is conducted under ASIC Corporations Instrument 2019/547, which exempts the company from issuing a prospectus for this offer. The company has provided comprehensive disclosures and cautions that shares are a speculative investment subject to market price fluctuations. The offer excludes US persons and is not registered under US securities laws, limiting participation to eligible Australian and New Zealand shareholders.
Investors should note the potential for scale back and the non-renounceable nature of the offer, which may affect the number of shares ultimately allocated. The Board reserves the right to amend or terminate the offer at any time, subject to regulatory requirements.
Bottom Line?
Sparc’s SPP sets the stage for accelerated growth but hinges on shareholder uptake and market reception to discounted equity.
Questions in the middle?
- Will the SPP fully subscribe or trigger a scale back, and how will that impact shareholder dilution?
- How effectively will Sparc deploy the new capital towards commercialising ecosparc® and Sparc Hydrogen?
- What market reaction can be expected given the significant discount to recent trading prices?