Argonaut, as Lead Manager, has been successful in raising A$5.5 million (gross) for East Africa Resources Limited (ASX: EAF) (“East Africa”) via a heavily oversubscribed public offer to new and existing investors of approximately 275,000,000 new ordinary shares at an issue price of A$0.02 per share.
The raising is a part of the Reverse Takeover by leading WA security company, Threat Protect Australia Pty Ltd, which was approved by East Africa’s shareholders at its recent Shareholder Meeting. Proceeds of the Capital Raising will be used to fund the growth of Threat Protect which has an option to acquire two additional security businesses, potentially increasing its client base.
Commenting on the Capital Raising, Threat Protect’s Managing Director, Demetrios Pynes said “the overwhelming response to the capital raising, which was initially aimed at raising $4.5 million but had scope for a further $1 million, reflected the Company’s strong growth prospects. We are a leading service provider in a rapidly growing industry. We have a strong Board and management team with an outstanding record in business and the security industry in particular. Now we are fully funded to capitalise on our growth opportunities via the options we hold to acquire two more businesses and the ability to expand beyond those. By operating our own monitoring centre, we can leverage acquisitions significantly by growing the revenue base at a much greater rate than our cost base, meaning we are ideally placed to achieve value-accretive growth for shareholders”.
East Africa has completed a consolidation of capital on a 1 for 4 basis for ordinary shares or options on issue and is currently in the process of changing the Company name to Threat Protect Australia Limited (ASX: TPS).
Argonaut is pleased to have undertaken the Reverse Takeover and Capital Raising for East Africa and looks forward to the relationship continuing.
Commenting on Argonaut’s involvement Demetrios Pynes said “the professional manner in which Argonaut managed and completed the RTO was a credit to the both the firm and the staff involved.”
Additional information regarding East Africa Resources can be found on the company’s website at www.eastafricaresources.com.au.