Analytica Announces its Latest Capital Raising Initiatives

18th March 2016, Analytica Announcement

Analytica Ltd (ASX: ALT) manufacturer of the PeriCoach® system, is pleased to announce the following capital raising initiatives

• A $1m placement to an entity associated with the Chairman Dr Michael Monsour (subject to shareholder approval), which if approved is expected to increase Dr Monsour’s interest in the Company to approximately 25%[1].
• A $0.5m placement to a new cornerstone investor conditional on the placement to Dr Monsour, which is expected to represent approximately 10% of the expanded capital base[2]
• A $0.3m placement to other non-related parties of the Company.
• A share purchase plan (SPP) offer to all existing shareholders.
• Funds raised will be used for working capital purposes.

The investment of $1m investment by the chairman, (subject to shareholder approval), and the investment by a new cornerstone investor shows strong support for the recently announced strategic plan and cost cutting initiatives of the company.

The shares under the placements and SPP will be issued at 0.255 cents per share.  The proposed share issue price to Dr Monsour is 0.300 cents per share.

Details of Funding

Placement to an entity associated with Chairman Dr Michael Monsour: The Company has reached agreement with the Chairman Dr Michael Monsour, that subject to shareholder approval, the Company will place 333,333,333 fully paid ordinary shares at an issue price of 0.300 cents per share, to raise $1m, to an entity associated with Dr Monsour.

The issue price is the volume weighted average price calculated over the last 5 days on which sales in the Company’s shares were recorded on ASX and Chi-X markets immediately preceding the date of this announcement. If the placement proceeds, Dr Monsour’s interest in the Company is expected to increase from approximately 12.8% to approximately 25%[3].

Analytica expects to hold an Extraordinary General Meeting on 22nd April 2016 (EGM) to seek shareholder approval for the placement and also the increase in Dr Monsour’s interest in the Company. Details of the EGM together with an independent expert report in relation to the increase in Dr Monsour’s interest in the Company will be sent to Analytica shareholders on or about 23 March 2016.

Placement to new cornerstone investor:  The Company has reached agreement with a new cornerstone investor to issue 202,324,638 fully paid ordinary shares at 0.255 cents per share to raise $515 928, subject to the placement to Dr Monsour. The placement shares are expected to represent approximately 10% of the expanded capital base of the Company[4].

The investor is a private investment fund in the biotechnology sector and is very supportive of the direction of the Company.

Completion of the placement is expected to occur within 3 business days after the holding of the EGM to approve the placement to Dr Michael Monsour and is conditional on that shareholder approval.

Placement to non-related parties: The Company has agreed to issue 109,813,725 fully paid ordinary shares at an issue price of 0.255 cents per share to raise approximately $280,000 to sophisticated, professional and other investors to whom no disclosure is required under the Corporations Act. Completion is expected to occur on Monday 21 March 2016.

Shareholder approval will not been sought for the cornerstone and non-related party placements as they fall within the Company’s ordinary placement capacity under the ASX listing rules. However, the Company will be seeking to ratify the placements at the EGM for the purposes of refreshing its placement capacity.

All shares issued under both placements will rank equally with existing shares on issue.

Share Purchase Plan: The Company is also announcing the offer of an SPP to all shareholders who are registered shareholders (Australian and New Zealand holders only) at 7pm (Sydney time) on the 17th March 2016.  The offer price will be the same as the cornerstone and non-related party placement price of 0.255 cents per Share

Further details of the share purchase plan can be found in the share purchase plan offer booklet which will be sent to shareholders on or about Wednesday 23 March 2016 and released on the ASX announcement platform today.

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