Heavy Rare Earths Opens 1-for-8 Entitlement Offer at 2.8 Cents

Entitlement Offer Details and Timetable

Heavy Rare Earths Limited (ASX:HRE) has commenced a non-renounceable pro rata entitlement offer, inviting eligible shareholders to subscribe for one new fully paid ordinary share for every eight shares held as at 5:00pm AEST on 24 August 2026. The offer price is set at 2.8 cents per new share, with the company targeting to raise approximately $728,119 before costs. Alongside each two new shares subscribed, shareholders will receive one free-attaching option exercisable at 6 cents, expiring on 26 February 2028.

The offer opened on 27 August 2026 and will close at 5:00pm AEST on 25 September 2026. Shareholders who fully take up their entitlement can also apply for additional shares up to 50% of their entitlement, subject to allocation policies and overall participation levels. The offer is not underwritten, leaving some uncertainty around the final capital raised.

Participation and Payment Options

Eligible shareholders can accept their entitlement in full or part via BPAY, with no need to return physical forms if paying electronically. For New Zealand shareholders, Heavy Rare Earths has facilitated payment through international electronic funds transfer (EFT) to accommodate overseas investors, albeit with the caveat that transfer and currency conversion fees may reduce the effective amount received.

Ineligible shareholders, mainly those with registered addresses outside Australia and New Zealand, have been formally notified that they cannot participate in the offer, consistent with ASX Listing Rule requirements and the company’s assessment of compliance costs and regulatory hurdles in foreign jurisdictions.

Allocation and Shortfall Management

Should there be any shortfall after the entitlement and top-up applications, the board reserves the right to place remaining shares with sophisticated or professional investors within three months following the close of the offer. This shortfall placement will be conducted in line with the allocation policy detailed in the prospectus. The company retains discretion over any scale-back of additional share applications.

This capital raise follows Heavy Rare Earths’ recent strategic initiatives, including expanding its Subron Rare Earths Project footprint and advancing drilling programs, which the company aims to fund through this and prior placements. The free-attaching options provide an incentive for shareholder participation while potentially delivering future capital if exercised.