Sarytogan Graphite has waived the Kazakh Issue Permit condition attached to its $0.058-a-share entitlement offer, allowing the offer to proceed on an unconditional basis for eligible shareholders. The underwriter’s obligation to take up shortfall securities remains conditional on the permit being obtained.
- One-for-four entitlement offer priced at $0.058 per share
- One free option for every two shares issued
- Kazakh Issue Permit condition waived by Sarytogan
- Underwriter’s shortfall commitment remains permit-dependent
- Offer timetable remains unchanged, with close scheduled for 26 November
Permit Condition Removed From Entitlement Offer
Sarytogan Graphite Limited (ASX:SGA) has removed the main condition attached to its capital raising, allowing the one-for-four entitlement offer to proceed unconditionally for eligible shareholders. The offer is priced at $0.058 per share and includes one free New Option for every two shares applied for and issued.
The decision updates the entitlement offer launch, which had been reported as dependent on the Kazakh Issue Permit. Sarytogan said it was waiving the condition after receiving feedback from its lawyers in Kazakhstan, who considered the risk of not obtaining the permit to be remote.
Underwriting Exposure Still Depends On Permit
The waiver does not remove every layer of uncertainty from the raise. Sarytogan confirmed that the underwriter’s obligation to subscribe for any shortfall securities remains conditional on the Kazakh Issue Permit being obtained.
That distinction matters: the offer can proceed for shareholders, but the final level of support available if entitlements are not taken up remains linked to the outstanding permit. The announcement does not disclose the total expected proceeds, and it does not state that the permit has been granted.
Offer Dates Remain Unchanged
The timetable remains intact. Shares trade ex-entitlement from 11 November 2026, the Record Date is 12 November, and the offer is scheduled to close at 5:00pm WST on 26 November.
The funding is intended to support a company developing the Sarytogan graphite deposit in Kazakhstan’s Karaganda region. Sarytogan reports a 225 million-tonne mineral resource grading 29.2% total graphitic carbon and a 14.5 million-tonne Ore Reserve grading 29.1%, while its project plans include graphite concentrate and higher-purity battery-related products.
Permit And Shortfall Remain The Key Variables
The immediate test is no longer whether the entitlement offer can proceed under its stated terms, but whether shareholder participation and the permit outcome produce the level of funding Sarytogan requires. Until the permit is obtained, the underwriter’s shortfall commitment remains conditional, leaving the eventual capital raised unresolved.
Bottom Line?
The offer has cleared one procedural hurdle, but the permit still matters to the backstop that could determine how much capital Sarytogan ultimately secures.
Questions in the middle?
- When will the Kazakh Issue Permit be obtained, and will it satisfy the underwriter’s condition?
- How much of the entitlement offer will eligible shareholders take up?
- What final funding level will Sarytogan report after the offer closes on 26 November?