1414 Degrees is pleased to offer shareholders an opportunity to participate in a Share Purchase Plan (SPP) targeted to raise approximately $3.0 million.
Under the SPP, eligible shareholders will be invited to subscribe for up to $30,000 of new fully paid ordinary shares in the Company (Shares) at an issue price of $0.12 (12 cents) per new Share, free of all brokerage and commissions.
Rationale and Use of Proceeds
The SPP allows eligible shareholders to participate in the Company’s capital raising program at an integral stage in its development.
As announced in the Company’s Quarterly Shareholder Update dated 31 July 2020, the Company is accelerating development on its Aurora Solar Energy Project (Aurora Project) in Port Augusta, South Australia after modelling of a hybrid renewable energy plant showed encouraging revenue potential based on the past five years of data. To attract project financing, your Company is undertaking forward modelling to 2050, a full engineering design of the plant and completing transmission connection studies. The Company continues to advance the technology readiness of the GAS-TESS and TESS-GRID.
The proceeds of the SPP will enable your Company to complete technical studies for the transmission connection, system integration and engineering of a proposed hybrid power plant at the Aurora Project. The proposed hybrid plant would combine photovoltaic (PV) generation to the grid and a large battery selling frequency support to the National Electricity Market (NEM).
The Aurora Project, managed by the Company’s wholly owned subsidiary SiliconAurora Pty Ltd, already has development approval for 70MW of solar PV and 150MW from a concentrated solar plant. The funds raised in the SPP will be used to extend approval for energy storage in a battery and 1414 Degrees’ TESS, enabling your Company to generate revenue from both frequency support services and selling long duration, firmed power to meet system requirements for electricity supply stability.
Proceeds are also intended to be used to fund further upgrades of the TESS technology to increase electrical efficiency and prepare our scalable silicon payload, SiBox, for implementation in a grid scale TESS.
I encourage all shareholders to take up an allocation under the SPP to enable your Company to realise the potential of its strategy. The Company’s Executive Chairman, Dr Kevin Moriarty will be applying for his full entitlement through his trustee company.
Participation in the SPP is entirely voluntary.
Share Purchase Plan
The offer of Shares under the SPP (SPP Offer) is being made exclusively to shareholders who were registered as holders of Shares at 6.30pm (ACST) on 2 September 2020 (Record Date) and whose registered address is in Australia or New Zealand (Eligible Shareholders).
The SPP Offer is targeting to raise approximately $3.0 million by way of the issue of up to 25,000,000 Shares (New Shares) and entitles Eligible Shareholders, irrespective of the size of their shareholding, to purchase up to $30,000 worth of New Shares at an issue price of $0.12 per New Share. The Company may elect to either scale back applications or increase the amount to be raised under the SPP Offer, subject to compliance with applicable regulatory requirements.
You may apply for parcels of New Shares in $1,000 increments with a minimum investment amount of $1,000, up to a maximum investment of $30,000, without incurring brokerage costs. The issue price of $0.12 per New Share represents a discount of:
- – 14.3% to the closing price of Shares on the Australian Securities Exchange (ASX) on 2 September 2020, which was the last trading day prior to the announcement of the SPP;
- – 12.6% to the volume weighted average price (VWAP) of Shares on the ASX during the 5 trading days immediately prior to the announcement of the SPP Offer on 3 September 2020; and
- – 20.9% to the VWAP of Shares on the ASX during the 30 trading days immediately prior to the announcement of the SPP Offer on 3 September 2020.
Full details of the offer will be contained in an offer booklet which is anticipated to be dispatched to Eligible Shareholders on 10 September 2020.
The proposed timetable for the SPP Offer is set out below. The Directors reserve the right to vary the dates and times without notice.
|Record Date (date for determining shareholders’ entitlements to participate in SPP Offer)||Wednesday, 2 September 2020|
|Announcement of SPP Offer||Thursday, 3 September 2020|
|Despatch of SPP Offer documentation to Eligible Shareholders||Thursday, 10 September 2020|
|Opening Date for SPP Offer||Thursday, 10 September 2020|
|Closing Date for SPP Offer||Wednesday, 30 September 2020|
|Issue of New Shares under the SPP Offer||Friday, 9 October 2020|
|Quotation of New Shares on ASX||Monday, 12 October 2020|
* These dates are indicative only. The Company may vary the dates and times of the SPP Offer without notice by lodging a revised notice with ASX. Eligible Shareholders are encouraged to submit their applications early as the Directors reserve the right to close the SPP Offer early if oversubscribed.