Bx Group Secures AU$1.8 Million Capital Through Convertible Note Placement

Highlights:

• Strategic Capital Raise: ABx Group Limited (ASX: ABX) secures $1.8 million through a two-tranche convertible note placement, supported by existing shareholders.
• Focused Allocation: Funds will drive the development of the Deep Leads Rare Earth Project, ALCORE pilot plant construction, and general working capital.
• Investor Incentives: Noteholders to receive 12 free unlisted options per note, exercisable at $0.08, with a 36-month expiry, subject to shareholder approval.

Capital Raising Initiative

ABx Group Limited (ASX: ABX) has announced a successful capital raise of $1.8 million through the issuance of convertible notes to professional and sophisticated investors. The placement will see approximately 1.8 million notes issued, each valued at $1.00, in two tranches. At the time of writing, the initiative has garnered strong support from ABx’s existing shareholders, reflecting confidence in the company’s strategic growth plans.

Details of the Convertible Notes

The convertible notes, carrying a 12% annual coupon rate, will be settled in shares at a 10% discount to the historical 5-day volume-weighted average price (VWAP), pending shareholder approval. Each noteholder will also receive 12 unlisted options per note held, with an exercise price of $0.08 and a 36-month expiry period.

The placement will occur in two stages:

• Tranche 1: Issuance of 370,000 notes, equivalent to $370,000, under ABx's existing placement capacity.
• Tranche 2: Issuance of 1.43 million notes and all associated options, subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled for February 2025.

Strategic Allocation of Funds

Funds raised through the placement will be allocated to several key initiatives:

• Development of the Deep Leads Rare Earth Project in Northern Tasmania.
• Construction of a pilot plant for ABx’s fluorine recycling subsidiary, ALCORE.
• General working capital and placement-related costs.

Leadership and Market Support

ABx’s Non-Executive Chair, Joycelyn Morton, emphasized the significance of this funding in advancing the company’s projects and long-term growth strategy. The placement has been managed by Sequoia Corporate Finance Pty Ltd and GBA Capital Pty Ltd, who will receive associated fees and broker options.

The capital raise reflects ABx’s commitment to innovation and operational expansion, paving the way for future advancements in rare earth and fluorine recycling technologies.

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