Monday 29th March 2010
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Rubicon, the biotech company with a controlling interest in listed wood products producer Tenon, completed a 1-for-7 share offer, raising $21 million to repay debt.
There was a take-up of more than 80% from existing shareholders, the company said in a statement today. The shares were mostly sold at 60 cents apiece, and those left over from shareholders who opted not to take up their entitlement were mainly sold to existing investors after a bookbuild at 80 cents a share. Rubicon last traded on Friday at 90 cents and has advanced 72% in the past 12 months.
The capital raising allows Rubicon to repay all outstanding debt, about $12 million, and leaves about $4 million cash in hand, said chairman Steve Kasnet.
The company has entered into a new US$15 million bank facility with ANZ Bank, which was conditional on repaying existing debt and runs until the end of calendar 2011.
The new facility “will be used to meet our expected future cash investment needs in ArborGen and Tenon as well as any on-going corporate needs,” Kasnet said. “Our sole focus will be on extracting value in Tenon and ArborGen, and we will not be investing in any activities beyond these two existing businesses.”
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