Conico Expands $2.1M Entitlement Offer Amid 1-for-8 Share Consolidation
Conico Ltd updates shareholders on a significant capital raising expansion, including a share consolidation and converting loan conversions to fund exploration at Mount Thirsty.
- Total converting loans raised reach $1.405 million
- Planned 1-for-8 share consolidation to streamline capital structure
- Expanded fully underwritten 1-for-1 entitlement offer to raise $2.1 million
- Shareholder approvals sought at 28 November AGM for consolidation and loan conversions
- Funds earmarked for Mount Thirsty drilling program and working capital
Capital Raising Update
Conico Ltd has provided a detailed update on its ongoing capital raising initiatives, signaling a strategic push to bolster its financial position ahead of planned exploration activities. Following an initial $1.395 million raised through converting loans, the company has secured an additional $10,000 from a sophisticated investor, bringing the total to $1.405 million. These funds are earmarked to support the upcoming drilling program at the Mount Thirsty Joint Venture Project and to maintain operational liquidity.
Share Consolidation and Entitlement Offer Expansion
In a move to streamline its capital structure, Conico plans a 1-for-8 share consolidation, subject to shareholder approval at the Annual General Meeting scheduled for 28 November 2025. This consolidation precedes an expanded fully underwritten non-renounceable entitlement offer on a 1-for-1 basis, aiming to raise approximately $2.1 million at a price of $0.008 per share (post-consolidation). This represents a notable increase from the previously announced $1.23 million target, reflecting growing confidence from underwriters and management in the company’s prospects.
Shareholder Approvals and Timetable
The AGM will also seek approval for converting the outstanding loans into fully paid ordinary shares, as well as for issuing securities to repay these loans, cover brokerage and underwriting fees, and settle related party debts. The company has provided a comprehensive timetable detailing key dates from the consolidation’s effective date on 1 December 2025 through to the final issue of entitlement offer securities by 12 January 2026. While indicative, this schedule offers shareholders clarity on the process and expected milestones.
Strategic Implications
Conico’s capital raising strategy underscores its commitment to advancing the Mount Thirsty project, a key asset in its portfolio. By securing additional funding and simplifying its share structure, the company aims to enhance shareholder value and position itself for potential exploration success. The involvement of Templar Corporate as lead manager and underwriter further adds credibility to the offer, suggesting robust market support.
Investors will be watching closely for the AGM outcomes and the subsequent execution of the entitlement offer, which will significantly impact Conico’s capital base and funding runway.
Bottom Line?
Conico’s expanded capital raise and share consolidation set the stage for a pivotal phase in its exploration journey.
Questions in the middle?
- Will shareholders approve the share consolidation and loan conversions at the AGM?
- How will the expanded entitlement offer affect existing shareholder dilution?
- What are the prospects and timelines for drilling results at Mount Thirsty?
