Evolve Education shares halted ahead of placement to institutional investors
Evolve Education Group has confirmed their application to the New Zealand and Australian Stock Exchanges respectively for a trading halt on their shares as they seek to raise capital by way of a placement of new shares to institutional investors.
The company, which confirmed on Monday that they had entered into a contract to acquire five early childhood education and care (ECEC) centres in the Australian Capital Territory for A$12.03 million, last raised capital in May 2019 as part of a larger reorganisation exercise designed to stablise the company’s finances and create a foundation for future growth.
Although today’s announcement provided few specifics, it is understood that the raise will be consistent with New Zealand Stock Exchange rule 4.5.1.a which states that an issuer “may issue equity securities provided the number to be issued does not exceed the aggregate of 15 per cent of the total equity securities already in issue by the company.”
With approximately 986 million shares on issue, this would imply a maximum issuance of around 147 million shares and a potential raise size of around $19 million assuming a discount is provided to last nights closing price of NZ$0.147.
The shares will be suspended from trading until the placement is completed, at which point the company will provide more details on the amount raised, pricing and investor appetite.
This is expected prior to the commencement of trading on 13 December 2019.
To read the announcement please click here.