Foresta Group Holdings Limited Secures $1.1 Million Capital Raise

Highlights:

• Foresta Group Holdings Limited (ASX: FGH) raises $1.1 million AUD through the placement of 220,000,000 shares, with funds allocated for general working capital.
• Investors will receive one free attaching unlisted option for each new share issued, exercisable at $0.02 with a two-year expiry.
• Executive Chairman Henry Cheng and Executive Director Dr. Maurice Fabiani participate in the placement with personal investments of $30,000 and $50,000, respectively, subject to shareholder approval.

Company Successfully Raises Capital to Boost Working Capital

Foresta Group Holdings Limited (ASX: FGH, “Foresta”) has announced the successful placement of 220,000,000 fully paid ordinary shares at an issue price of $0.005 per share to raise $1.1 million AUD before costs. At the time of writing, the placement has been fully subscribed, with strong interest from both new and existing investors, including sophisticated and professional investors, as well as the company's directors. The funds raised will be used to bolster the company’s general working capital to support ongoing operations and development.

Details of the Placement

The placement will see investors receive one free attaching unlisted option for each share purchased. These options, exercisable at $0.02 with a two-year expiry, provide added value to investors. The placement is structured in line with the company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A. Of the total shares, 204,000,000 will be issued within the company's available placement capacity.

The issue of new shares is scheduled for settlement on Friday, 29 November 2024. Additionally, Foresta’s Executive Chairman Henry Cheng and Executive Director Dr. Maurice Fabiani have committed to participating in the placement, investing $30,000 and $50,000 respectively. The shares and options associated with their participation will be subject to shareholder approval at a General Meeting of Shareholders.

Positive Outlook and Support for Foresta’s Flagship Project

The strong demand for the placement reflects investor confidence in the new board and management. Henry Cheng, Executive Chairman of Foresta, expressed gratitude towards both new and existing investors, emphasizing that the capital raised will ensure the company has the necessary resources to continue progressing its flagship project in New Zealand. This capital injection comes at a crucial time, providing the company with the flexibility to meet short-term operational requirements.

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