Mighty Kingdom Launches Capital Raise to Support Growth Strategy

Highlights:

• $3.35 million capital raise through a 1-for-1 entitlement offer and two placements at $0.005 per share to improve the company’s financial position.
• Offer price set at a 28.6% discount to the last closing price, with a potential issue of up to 670 million new shares—representing 310% of the current capital.
• Trading halt effective from 8 April 2025, with the Retail Entitlement Offer open from 15 to 29 April 2025, subject to shareholder approval for the $2 million placement.

Entitlement Offer and Placements at $0.005 per Share

Mighty Kingdom Limited (ASX: MKL) has announced a capital raise of up to $3.35 million, aimed at reinforcing its balance sheet and supporting ongoing operational and growth initiatives.

The raise will be executed through a 1-for-1 accelerated non-renounceable entitlement offer, alongside two share placements priced at $0.005 per share—a 28.6% discount to MKL’s previous close of $0.007.

Offer Components

• Entitlement Offer: A 1-for-1 issue to eligible shareholders to raise approximately $1.08 million.
   
• Tranche 1 Placement: Targeting institutional and sophisticated investors under MKL’s existing placement capacity to raise around $270,000.
   
• Tranche 2 Placement: A proposed additional placement of up to $2.0 million, subject to shareholder approval at an upcoming Extraordinary General Meeting.
  In total, up to 670 million new shares may be issued—equating to around 310% of the current issued capital. All new shares will rank equally with existing shares upon issue.

Use of Funds

Proceeds from the raise will be directed towards:

• Funding operating initiatives and related one-off costs
• General working capital
• Costs associated with the capital raise

Trading Halt in Effect

MKL entered a trading halt on 8 April 2025 to facilitate the Institutional Entitlement Offer. The company expects to resume trading once the results of this offer are announced—anticipated by 10 April 2025.

Institutional Offer

The Institutional Entitlement Offer opened on 8 April and allows eligible institutional shareholders (with registered addresses in Australia) to acquire 1 new share for each existing share at the offer price of $0.005. Any shortfall will be placed via an institutional bookbuild.

Retail Offer

The Retail Entitlement Offer is set to open on 15 April 2025 and close on 29 April 2025 (Adelaide time). Eligible retail shareholders must be on the register by 7:00pm (Adelaide time) on 10 April 2025. Since the offer is non-renounceable, entitlements not exercised will lapse without compensation.

Any shortfall from retail investors may be allocated to new or existing investors via a retail shortfall bookbuild.

Next Steps

The company will provide further updates regarding the Additional Placement and the Extraordinary General Meeting (EGM) required for shareholder approval. Timing and additional details will be shared in a notice of meeting.

Mighty Kingdom has appointed 708 Capital Pty Ltd and Sandton Capital as Joint Lead Managers for the offer and expects strong support from existing major shareholders.

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