Australia / Germany – Metal recycling group CMA Corporation from Australia says that German scrap metal recycler and trader Scholz has agreed to invest Aus$48,990,000 in the Company through a private Placement.
The Essingen-based Scholz has agreed to acquire 230 million shares at 21.3 cents per share, representing a premium of 63.8% to the closing share price on 12 February 2009 / 67.9% to the 5 day volume weighted average price (VWAP) on 12 February 2009.
The Placement follows an initial Aus$11.25 million which Scholz invested in CMA last November through the acquisition of 45 million shares at 25 cents per share. The latest investment will raise Scholz’s holding in CMA to 42.18%.
The investment, which consolidates Scholz’€™s position as CMA’€™s biggest single investor, is
conditional on CMA shareholder approval.
CMA Managing Director Doug Rowe says the funds raised through the Placement would be
used for working capital management and to repay debt. ‘We are delighted with the continued support we have received from Scholz,’€™ says Mr Rowe.
‘€˜Having a company of Scholz’€™s size and strength is an enormous advantage to us in these very difficult market conditions. With the support of Scholz, we will have a significantly strengthened balance sheet and are better positioned for a rebound in growth and profitability in the second half of 2009,’€™ he adds.
Under the terms of the investment agreement, Scholz will also have a right to participate for its pro rata share in any future placements by CMA subject to Scholz maintaining a shareholding in CMA of at least 25%.