September 30, 2020
The way is now clear for Derrimon Trading Limited to approach the equities market with another public offering (APO) of shares to raise what is believed to be as much as $4.8 billion.
This following last Friday’s (September 25) approval by shareholders of four resolutions at the company’s annual general meeting (AGM) held on September 25, 2020 at Knutsford Court Hotel in Kingston.
The resolution authorises the company’s board and management to “issue up to 1.8 billion ordinary shares by way of an offer for subscription to the public pursuant to a prospectus (herein an additional public offering) in lieu of a rights issue to existing stockholders”.
At the current trading rate of Derrimon stocks at $2.70 and without any discount, 1.8 million shares would fetch $4.86 billion.
Shareholders have also mandated the board and management to determine, in their discretion, any terms and conditions relating to the APO. Any pre-emption rights to which the existing stockholders may be entitled have been “disapplied” for the purposes of the APO, based on a resolution approved by shareholders.
The proceeds of the fund-raising event will be used for expansion capital and to write down debt. The APO is expected to hit the market sometime in late October to early November, with the prospectus being published within the next two to three weeks.
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