The Australian share market is having a relatively flat day on Thursday, but the same cannot be said for the ASX 300 stock in this article.
Its shares have come crashing down to earth after returning from a trading halt.
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Which ASX 300 stock?
The stock that is getting smashed today is Silex Systems Ltd (ASX: SLX). In early trade, the uranium technology company's shares are down 17% to $3.86.
The catalyst for this has been the completion of the ASX 300 stock's capital raising this morning.
According to the release, Silex Systems has received firm commitments for an institutional placement of approximately 33.3 million new fully paid ordinary shares to new and existing institutional and sophisticated investors.
These shares are being issued at a 15.8% discount of $3.90 per new share to raise gross proceeds of approximately $130 million.
Management notes that the placement received strong support from local and international investors. This includes existing shareholders and new institutions.
The ASX 300 stock will now push ahead with a non-underwritten share purchase plan to raise up to a further $15 million.
Why is it raising funds?
The release reveals that proceeds from the placement, together with existing cash on hand of approximately $69.6 million, will be used primarily to support the commercialisation of the SILEX uranium enrichment technology in the United States through exclusive licensee, US-based Global Laser Enrichment (GLE).
In addition, a smaller portion of the proceeds will be used to pursue additional commercial opportunities, strengthen the company's balance sheet, and fund other general corporate expenses.
Upon completion of the placement, the ASX 300 stock expects to remain fully-funded through to the end of FY 2028. It estimates that it will have cash reserves of approximately $214.6 million following the placement and share purchase plan.
Commenting on the capital raising, the company's CEO, Michael Goldsworthy, said:
We are delighted with the strength of support from both Silex's existing share register and a range of new domestic and international shareholders for the Placement. The quality of participating investors is a strong validation of Silex's ongoing commitment to the commercialisation of its innovative SILEX uranium enrichment technology, at a time when the global nuclear industry is experiencing unprecedented positive tailwinds.
Importantly, the Placement proceeds will underpin Silex's ability to support GLE in the pursuit of its unique 'Triple Opportunity' within the global nuclear fuel supply chain. With the nuclear renaissance gaining momentum around the world, we look forward to supporting GLE's efforts to establish new US enrichment capacity, helping to restore US leadership in nuclear technology and contributing to US energy security ambitions.
