ReNu Energy Limited (formerly Geodynamics Limited), a power generation company, has amended the terms of non-renounceable pro-rata entitlement rights offering of 129,574,868 shares, to raise gross proceeds of AUD1.17 million (USD0.88 million). Pursuant to the transaction, the company decreased the price of the offering from AUD0.0095 (USD0.007) per share to AUD0.009 (USD0.006) per share and decreased the size from AUD1.23 million (USD0.93 million) to AUD1.17 million (USD0.88 million).
In the offering, the company will issue one new share for every five shares held on the record date of March 21, 2017, with a registered address in Australia or New Zealand. The issue price represents a discount of approximately: (i) 20.7% to the 30 day volume weighted average price up to and including March 15, 2017; and (ii) 18.2% to the closing price on March 15, 2017.
The company intends to use the proceeds to strengthen its balance sheet and to provide added financial flexibility to pursue the growth opportunities aligned with the strategic direction.
The offering is expected to be completed on April 18, 2017.
Announced: On March 14, 2017, ReNu Energy announced a non-renounceable pro-rata entitlement rights offering of approximately 129,574,868 shares at a price of AUD0.0095 (USD0.007) per share, for gross proceeds of up to AUD1.23 million (USD0.93 million).