Xstate Targets $2-3M Capital Raise with 150M Shares at 2 Cents Each
Xstate Resources has appointed joint lead managers for a $2-3 million capital raise aimed at re-compliance with ASX listing rules and trading reinstatement. The company also plans a key acquisition pending shareholder approval.
- Appointment of PAC Partners and BW Equities as joint lead managers
- Capital raising target between $2 million and $3 million via public offer
- Proposed 2.23, 1 share consolidation subject to shareholder approval
- Issuance of up to 25 million options to joint lead managers as part of fees
- Upcoming shareholder meeting to approve Diona project acquisition and re-compliance resolutions
Capital Raise to Support ASX Reinstatement
Xstate Resources Limited (ASX, XST) has taken a significant step towards regaining its ASX listing status by appointing PAC Partners Securities and BW Equities as joint lead managers for an upcoming public offer. The company aims to raise between $2 million and $3 million through the issuance of 100 to 150 million shares priced at 2 cents each. This capital injection is a critical component of Xstate’s strategy to meet the ASX’s listing requirements and secure reinstatement to trading.
Share Consolidation and Options Incentives
Integral to the capital raise is a proposed share consolidation on a 2.23, 1 basis, which requires shareholder approval at an imminent general meeting. This consolidation is designed to streamline the company’s capital structure ahead of its re-compliance efforts. Additionally, Xstate plans to issue up to 25 million unlisted options to the joint lead managers as part of their remuneration, exercisable at 4 cents each and expiring 18 months post-issuance. These incentives align the interests of the lead managers with the company’s successful capital raising and future growth.
Strategic Acquisition on the Horizon
Beyond the capital raise, Xstate is preparing to seek shareholder approval for the acquisition of the Diona project, an asset that could enhance its exploration portfolio. The company’s exploration interests currently span Queensland, Australia, and the Sacramento Basin in California, positioning it within promising oil and gas regions. The acquisition and re-compliance resolutions will be detailed in a Notice of Meeting expected to be dispatched shortly.
Looking Ahead
While the capital raise and acquisition plans mark positive momentum, the timeline for ASX re-compliance and trading reinstatement remains contingent on shareholder approvals and regulatory processes. The company’s ability to execute these steps successfully will be closely watched by investors eager for clarity on its strategic direction and financial health.
Bottom Line?
Xstate’s capital raise and acquisition plans set the stage for a pivotal chapter in its ASX journey, with shareholder decisions looming.
Questions in the middle?
- Will shareholders approve the proposed share consolidation and Diona project acquisition?
- How will the capital raise impact Xstate’s exploration and development activities?
- What is the anticipated timeline for ASX re-compliance and trading reinstatement?
