ARC Funds Raises $750,000 via Placement and Director Share Subscription
ARC Funds Limited has completed a $750,000 equity raise through a placement and director share subscription, supporting its recent acquisitions and growth strategy.
- Placement of 5.5 million shares at 10 cents with free attaching unlisted call options
- Managing Director Scott Beeton subscribes for 2 million shares with options
- Options exercisable at 12.5 cents, expiring July 2026, pending shareholder approval
- Funds to support working capital after acquisition of The Term Deposit Shop and investment in Ausbiz Capital
- No broker fees paid; legal advice by K&L Gates
Equity Raise Details
ARC Funds Limited (ASX, ARC) has successfully raised $750,000 through a two-stage equity placement combined with a director commitment. The company issued 5.5 million new shares at 10 cents each to wholesale and sophisticated investors, accompanied by free attaching unlisted call options on a one-for-one basis. In parallel, Managing Director Scott Beeton subscribed for 2 million shares on identical terms, also receiving matching options.
Strategic Use of Funds
The capital injection is earmarked primarily for working capital purposes following ARC Funds’ recent acquisition of The Term Deposit Shop and its investment in Ausbiz Capital. These moves signal the company’s intent to expand its product offerings and financial services distribution capabilities, aiming to build a sustainable and scalable business model.
Option Terms and Shareholder Approval
The unlisted call options attached to the placement and director shares carry an exercise price of 12.5 cents per share and expire on 9 July 2026. While the shares have been issued, the options are subject to shareholder approval at the upcoming meeting expected in late August. If approved, these options could provide additional capital and shareholder value over the next year.
Market Reception and Governance
The placement was conducted without broker fees, with Morrison Securities acting as settlement broker and legal advice provided by K&L Gates. The company welcomed new shareholders while acknowledging the ongoing support of existing investors. The issue price represented a modest 7% discount to the 15-day volume weighted average price, reflecting a balanced approach to capital raising.
Looking Ahead
ARC Funds’ successful raise demonstrates growing investor interest as it executes on its strategic growth initiatives. The company’s next steps will focus on deploying the capital efficiently and securing shareholder approval for the options, which could unlock further value for investors.
Bottom Line?
ARC Funds’ capital raise sets the stage for growth, but shareholder approval of options will be a key next hurdle.
Questions in the middle?
- Will shareholders approve the unlisted call options at the upcoming meeting?
- How will ARC Funds deploy the new capital to maximize returns from recent acquisitions?
- What impact will the new shares and options have on ARC Funds’ share price and liquidity?