GBM Issues 56.6 Million Shares, Awaits $5 Million from Wise Walkers
GBM Resources has partially completed its $8 million placement to Wise Walkers but faces delays in receiving the remaining funds due to Chinese foreign exchange controls. Shareholder approval for the balance is now pending.
- Partial placement of 56.6 million shares completed for $3 million
- Remaining $5.05 million delayed by Chinese regulatory approvals
- New binding commitment with Wise Walkers subject to shareholder approval
- Shareholder meeting scheduled for January 2026 to approve balance
- Delays highlight challenges in cross-border capital raising
Placement Progress and Regulatory Hurdles
GBM Resources Limited (ASX, GBM) has provided an update on its recent capital raising placement with Wise Walkers Limited, a key investor holding funds in China. While the company successfully issued 56.6 million shares for $3 million, the transfer of the remaining $5.05 million has been stalled due to delays in obtaining foreign exchange approvals from Chinese authorities.
The initial placement was approved by GBM shareholders at the annual general meeting held in November 2025, with the full placement intended to raise approximately $8 million through the issue of over 151 million shares at 5.3 cents each. However, Wise Walkers has encountered regulatory roadblocks in China, a common challenge for cross-border investments, which has slowed the transfer of funds.
New Commitment and Shareholder Approval
In response to these delays, GBM has entered into a new binding commitment with Wise Walkers to subscribe for the remaining shares once the funds are cleared, subject to a fresh round of shareholder approval. This upcoming approval process is scheduled for January 2026, signaling that the company remains optimistic about completing the placement despite the regulatory hurdles.
The partial completion of the placement means GBM has already bolstered its cash position by $3 million, which can support ongoing exploration and operational activities. However, the delay in securing the full amount introduces some uncertainty around the timing and scale of the company’s planned capital inflows.
Implications for GBM and Investors
GBM’s situation underscores the complexities Australian mining and resource companies face when raising capital from international investors, particularly those based in jurisdictions with stringent foreign exchange controls like China. While the company has taken prudent steps to secure shareholder backing for the outstanding tranche, investors will be watching closely to see how quickly Wise Walkers can navigate the regulatory landscape.
For GBM, the successful completion of this placement is critical to maintaining momentum in its exploration projects and broader strategic goals. The company’s transparent communication and proactive approach to securing approvals reflect a commitment to managing these challenges responsibly.
Bottom Line?
GBM’s capital raise faces a regulatory test in China, with shareholder approval the next hurdle to clear.
Questions in the middle?
- When will Wise Walkers receive the necessary Chinese foreign exchange approvals?
- How might further delays impact GBM’s exploration and operational plans?
- What contingencies does GBM have if the remaining funds are not secured?
