Butn Limited (ASX: BTN), a Melbourne-based company, has unveiled plans for a significant capital raising initiative aimed at bolstering its financial reserves by approximately $5 million. This move is designed to fuel further growth and provide for general working capital needs. The strategy involves a 1-for-1.9 pro rata accelerated, non-renounceable entitlement offer at a discounted offer price of $0.052 per new share.
This pricing represents a notable discount from recent trading figures, including a 29.7% drop from the last traded price and a 33.4% decrease from the 5-day VWAP. Directors of Butn are showing their support by committing to participate up to $115,000 through entitlement take-up and sub-underwriting efforts.
The entitlement offer is structured to include both institutional and retail components, with eligibility extending to shareholders in Australia, New Zealand, and Singapore. The institutional offer kicks off and concludes on the 15th of April, 2024, with the retail offer opening on the 19th of April. This initiative is managed and underwritten by Unified Capital Partners Pty Ltd, with legal counsel from K&L Gates.
Key dates for the equity raising process span from the opening of the institutional offer to the commencement of trading for new shares issued under the retail entitlement offer on the 17th of May, 2024. Butn emphasizes that this announcement does not serve as financial advice and encourages shareholders to seek independent counsel.
Butn Limited positions itself as an innovator in the B2B funding sector, focusing on easing working capital constraints for SMEs through transactional funding. With a vision of providing immediate cash flow solutions, Butn has already facilitated over $1.5 billion in funding for Australian businesses.
This capital raising effort is not just about bolstering Butn's financial standing but also about reinforcing its commitment to supporting SME growth across Australia. For further details, shareholders and interested investors are directed to Butn's official communication channels.
Note: This summary is for informational purposes only and does not constitute investment advice or an offer to sell or buy securities.
ASX Code : BTN