OpenLearning nearly triples placement as capital commitments reach $980,000

Placement commitments rise to $430,000

OpenLearning Limited (ASX:OLL) has increased the committed portion of its capital raising from $700,000 to $980,000 after lifting its placement from $150,000 to $430,000. The placement is now fully committed, with the company attributing the increase to additional demand from sophisticated and professional investors.

The placement will issue 43 million shares at $0.010 each, along with 43 million free attaching options. Each option carries a $0.015 exercise price and expires on 31 October 2027. The securities are expected to be issued on 11 November, before the entitlement offer record date, and the company says no lead manager fees will be payable.

Directors and ECA commit approximately $550,000

Directors have committed approximately $550,000 under the entitlement offer, including about $525,000 from ECA Investments Group, OpenLearning’s largest shareholder and an entity associated with non-executive director Rupesh Singh. The commitments are on the same terms as the placement, although ECA and the directors are not participating in the placement itself.

The update builds on the November entitlement offer, which was previously described as carrying $700,000 in commitments and a potential raise of up to $2.14 million. The revised structure now gives eligible shareholders the right to buy one new share for every four held at 7:00pm AEDT on 13 November.

Entitlement offer could add $2.06 million

Up to 206,284,950 new shares and the same number of options will be offered under the entitlement issue, potentially raising approximately $2.06 million. Combined with the placement, the total raising could reach approximately $2.49 million before costs.

Eligible shareholders in Australia, New Zealand, Malaysia and Singapore will receive the offer at $0.010 per share, with one free option for every new share subscribed. Those taking up their full entitlement may also apply for additional securities under the shortfall offer.

Ununderwritten offer leaves final proceeds uncertain

The entitlement offer is non-renounceable, has no minimum subscription and is not underwritten. That means the maximum $2.49 million outcome is not assured, and the eventual proceeds will depend on shareholder take-up and any shortfall applications.

Chief executive and managing director Adam Brimo said the commitments represented a strong endorsement of OpenLearning’s strategy, while highlighting that the board and largest shareholder were investing alongside new investors on identical terms (ASX:OLL). The immediate test is whether that support extends beyond the committed portion when the entitlement offer opens on 18 November and closes on 3 December.