Australia-headed biotech developer Leaf Resources Ltd has announced that it has received commitments to raise AU$5 million via a private placement to new and existing domestic and international institutional and sophisticated investors. The proceeds of the placement will be used to progress the ongoing commercialisation of Leaf’s proprietary Glycell technology, including engineering works for the Malaysian Biorefinery project.
According to a statement, the placement will involve the issue of approximately 66.7 million new fully paid ordinary shares in the company, at an issue price of AU$0.075 per share. Investors who participate in the placement will receive one free attaching option for every two shares subscribed for in the placement. The option is exercisable at AU$0.09 on or before May 31, 2019.
The proceeds of the placement will be used to progress the ongoing commercialisation of Leaf’s proprietary “Glycell” technology, including engineering works for the Malaysian Biorefinery project. The engineering works include a phase 3 integrated development study (IDS) which is expected to commence in October this year and is integral to progressing the Biorefinery Project through a planned bankable feasibility study, project financing, and final approvals.
Proceeds will also be applied towards general working capital requirements. Commenting of the Placement, Leaf’s Chairman Doug Rathbone said the Company is delighted with the response to the placement offer and the support it has received from both new and existing shareholders.
This well supported and oversubscribed capital raising positions Leaf strongly as we move toward the commercialisation of Glycell. I am particularly encouraged that existing institutional shareholders supported the offer to such a strong extent, and it is also pleasing that we have been able to bring a number of new, high quality institutional and sophisticated investors onto our register, said Rathbone.
In July, Leaf signed a Memorandum of Understanding (MoU) with Biovision & Greenergy Sdn Bhd (B&G), a Malaysia based company for the supply of empty fruit bunch fibre (EFBF) as feedstock for the Malaysian biorefinery project in Segamat, Johor.
Recently, the company entered into a non-binding MoU with PETRONAS Chemicals Group Berhad (PCG) which provides for a study of chemical markets and commercially ready bio-technologies. Subject to satisfactory findings in the study and the approval of PCG, the parties may pursue an offtake agreement for the fermentable sugars produced at the planned biorefinery.
The placement strongly positions Leaf for commercialisation of Glycell and builds on the positive momentum in the company after the recent announcement relating to the offtake MoU with PETRONAS Chemicals Group and the continued support of the Queensland Government for a potential biorefinery in one of the state’s sugar cane regions, said Ken Richards, Managing Director, Leaf Resources.
