Income Asset Management Group Launches AU$18 Million Equity Raising

Income Asset Management Group Limited (ASX: IAM) has unveiled an AU$18 million equity raising initiative, designed to strengthen its balance sheet and support its ongoing growth. At the time of writing, the company has launched a fully underwritten renounceable entitlement offer and placements to sophisticated investors, aiming to raise the necessary capital.

Equity Raising Structure

The equity raising consists of:

• Entitlement Offer: A 1.51 for 1 fully underwritten renounceable entitlement offer to raise approximately AU$15 million.
• Placement: A placement to raise approximately AU$1.5 million.
• Conditional Placement: An additional AU$1.5 million raised via a conditional placement, subject to shareholder approval.

These new funds will be used to repay all outstanding IAM 12% Nov-25 Notes, provide general working capital, and cover equity raising costs. A total of ~600 million new shares will be issued under the equity raising at a price of AU$0.03 per share, representing significant discounts to IAM's recent share price.

Executive Remarks

John Nantes, Executive Chair of Income Asset Management, commented on the equity raise:
“This capital raise allows IAM to reset the balance sheet and focus on scaling our business. We’re grateful for the continued support from our shareholders and look forward to leveraging this capital to grow revenues.”

Shareholder Opportunities

Eligible shareholders as of 17 October 2024 will have the opportunity to participate in the entitlement offer at $0.03 per share, a 62% discount from the last closing price of $0.079. Trading of entitlements will begin on 16 October 2024 under the ticker code IAMR, providing shareholders a flexible opportunity to trade or take up their rights.

With this strategic capital raise, Income Asset Management aims to position itself for future growth while streamlining its operations and financial standing.

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