Ann: Share Purchase Plan Completed, page-11

Capital increase significantly oversubscribed

with Translater :

Sovereign Metals today announced the completion of its Share Purchase Plan (SPP).As announced, the offer was limited to a total subscription amount of AUD 1 million. However, the company received subscription orders for AUD 2.2 million.

As a result, the subscriptions had to be cut back by 55%, which in turn means that the subscriber will receive approximately 45% of the subscription amount submitted.

For our growth portfolio, I had submitted a subscription order for 150,000 shares (AUD 9,750). I have not yet received any allocation from the bank, but I now expect that we will receive only 4,387 AUD shares.

Computershare Australia is now taking care of the allotments and the notifications should be made in the coming days. The stock came back today, as probably some wanted to realize the fast cent.If the allocation for our growth portfolio turns out as indicated above, then that is too little for me.I am therefore inclined to place another buy order in the market in order to increase the position even further, similar to what was initially planned.

Conclusion:
I now wait for the final allocation and the next trading days. Today, the share was traded at AUD 0.076 and thus AUD 0.011 above the subscription level. Should more small investors sell to realize this mini profit, I will place another buy order in the market.Sovereign is a big favourite of mine and until the end of the year I expect prices to be quite different than they are at the moment.