Wasabi Energy Limited ASX Compliance (6837U)

TIDMWAS

RNS Number : 6837U

Wasabi Energy Limited

05 December 2013

5 December 2013

NON-RENOUNCEABLE RIGHTS ISSUE

Notice under s708AA of the Corporations Act 2001 (Cth) (the "Act")

On 6 December 2013, Wasabi Energy Limited (Company) will despatch to eligible shareholders an Offer Document in respect of a pro-rata non-renounceable rights issue on the basis of one (1) ordinary Share for every one (1) Ordinary Shares held by Shareholders registered at 5.00pm (Melbourne time) on 5 December 2013 at an issue price of 0.4 cents per Share (Rights Issue).

The Rights Issue, if fully subscribed, will raise approximately A$14.8 million and will result in the issue of approximately 3,718,761,160 new ordinary shares in the Company.

The Company gives notice under s708AA of the Act, that:

(a) the Company will offer the new Shares under the Rights Issue without disclosure under Part 6D.2 of the Act;

   (b)          this notice is being given under s708AA(2)(f) of the Act; 
   (c)           As at the date of this notice, the Company has complied with: 
   (i)            the provisions of Chapter 2M as they apply to the Company; and 
   (ii)          s674 of the Act; 

(d) As at the date of this notice, there is no information to be disclosed by the Company which is excluded information (as defined in s708AA(8) of the Act) and that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of the assets and liabilities, financial position and performance, profits and losses and prospects of the Company or the rights and liabilities attaching to the new Shares;

(e) The potential effect of the issue of the new Shares under the Rights Issue will have on the control of the Company, and the consequences of that effect, are described below.

Effect of the Offer

Assuming the Offer is fully taken up by Eligible Shareholders, $14,875,044.64 less expenses of the Offer, which are estimated to be $300,000, will be raised. The funds raised will be used as set out in the Use of Proceeds paragraph set out above.

If the Offer is fully subscribed, a further 3,718,761,160 Ordinary Shares will be issued, increasing the Company's issued capital by 100%.

Effect of the Offer on control of the Company

As the Offer is being made as a pro-rata rights issue on a 1 for 1 basis, the maximum number of new Ordinary Shares which may be issued under the Offer represents 100% of the share capital of the Company currently on issue. Accordingly, the Offer could have a material effect on the control of the Company.

By way of example, the most significant effect which the Offer could have on the control of the Company would occur if the largest Eligible Shareholder takes up its full entitlement under the Offer and no other Eligible Shareholder subscribes to the Offer. In these circumstances the largest Eligible Shareholder's holding would increase from 9.46% to 17.28%.

As at least some other Eligible Shareholders are expected to take up their Entitlements, the proportional increase in the holdings of the largest Eligible Shareholder is likely to be less than shown above, and will be less if the Company secures an underwriter for all or part of any Shortfall.

If the Company secures an underwriter for the whole of any Shortfall, and no Eligible Shareholder take up their entitlement under the Offer, the underwriter would acquire voting power of 50% in the Company.

For further information, please contact:

 
 Wasabi Energy Limited 
 John Byrne, Executive Chairman          [phone] 
 Diane Bettess, COO 
 Cenkos Securities - London Financial 
  Advisor, Broker & NOMAD 
 Ivonne Cantu                            [phone] 
 Beth McKiernan                          [phone] 
 Newgate Threadneedle - UK Media 
  Enquiries 
 Josh Royston                            [phone] 
 Hilary Millar 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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