The ASX update is provided below.<
Entitlement Offer Results and Notification of Shortfall
1414 Degrees Limited (“1414 Degrees” the “Company”) confirms that the non-renounceable pro-rata offer of new fully paid ordinary shares (Entitlement Offer, New Shares) previously announced on Friday, 14 July 2023, closed at 5:00pm (AEST) on Monday, 14 August 2023 (Closing Date).
The Company is pleased to advise that the Entitlement Offer was strongly supported by existing shareholders, with the Company receiving total applications from Eligible Shareholders of approximately $1.471 million (equal to 32,683,063 New Shares).
Reflecting on this achievement, Dr Kevin Moriarty, Executive Chairman remarked, “We are pleased our shareholders support accelerating the development of a mass-manufacturable energy storage SiBrick and see the potential of the SiBox® heat battery to impact decarbonisation efforts in high temperature industry.”
Applications from Eligible Shareholders consisted of 27,674,311 New Shares from entitlements taken up in full as well as 5,008,752 New Shares from applications for additional New Shares offered under the top up facility (Top Up Facility).
In accordance with the terms and conditions set out in the Prospectus dated 14 July 2023 (Prospectus), one free attaching option exercisable at $0.10 each on or before the day that is 24 months after the date of issue (New Option) will be issued for each New Share applied for and issued under the Entitlement Offer.
In line with the indicative timetable included in the Prospectus, the Company anticipates that New Shares and New Options (together, New Securities) applied for under the Entitlement Offer will be issued on Monday, 21 August 2023. The Company intends to lodge Appendices 2A and 3G on Monday, 21 August 2023 in accordance with this timeline.
The funds raised from the Entitlement Offer and Shortfall Offer will be primarily used to accelerate product development for commercialisation of the Company’s and SiBrickTM and SiBox® products1. This is in the wake of recent technical milestones, including:
- the successful commissioning of 1414 Degrees’ SiBox® Demonstration Module (SDM) which is now operating autonomously and completing validation phase testing2. This testing involves repeated charge and discharge cycles to simulate daily electricity-to-heat time shifting, providing confidence in a range of use cases and industry partners. These operational tests follow extensive trials where the SDM demonstrated its ability to convert electric energy into a controlled hot air stream for industrial purposes.
- the strengthening of collaboration with Refratechnik-Steel to conduct manufacturing trials of the Company’s groundbreaking latent heat SiBrickTM3. As 1414 Degrees progresses the commercialisation of its technology, the collaboration will focus on manufacturing methods and costs.
Shortfall Offer
The Shortfall following the issue of New Securities is anticipated to be 70,059,980 Shares (Shortfall Offer Securities), equal to approximately $3.153m. Taylor Collison Limited (Lead Manager) is acting as lead manager to the Entitlement Offer and any shortfall to the Entitlement Offer (Shortfall Offer). In accordance with the Lead Manager Mandate, Taylor Collison will place the Shortfall Offer Securities on a best endeavours basis to sophisticated and professional investors, subject to the Board’s discretion as to the allocation of the Shortfall. Please refer to sections 2.2, 2.3, and 8.1 of the Prospectus for more information regarding the Shortfall Offer and the Lead Manager Mandate. The Shortfall Offer Securities will be allocated within three months after the Closing Date.
Conditional Placement Offer
Since the value of the Shortfall Offer Securities is higher than $500,000, the Company confirms that the Conditional Placement Offer will not be proceeding. Refer to section 2.5 of the Prospectus for more information regarding the Conditional Placement Offer.