The issue price represents a discount of around 6.6% to the volume weighted average price (VWAP) of 42.81 cents for the shares traded on March 13.
The placement shares represent about 9.8% of the company’s existing share capital of 614,882,023 shares. It will represent about 8.9% of the enlarged share base thereafter.
According to CSE, the proposed placement will increase resources available to the company to pursue further inorganic growth through strategic acquisitions or investments primarily in its existing markets, including the US, Australia and New Zealand.
On a pro forma basis, the group’s net tangible assets (NTA) per share would have been 21.62 cents instead of 19.96 cents after the proposed placement should it have been completed on Dec 31, 2023.
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The pro forma earnings per share (EPS), if the placement was completed on Jan 1, 2024, would have been 3.34 cents instead of 3.66 cents.
Shares in CSE Globalclosed unchanged at 42.5 cents on March 14.
