Metal recycling group CMA Corporation Limited (ASX: CMV) is pleased to announce that it has completed the issue of 45 million shares to global scrap metal recycler and trader Scholz Invest GmbH (“Scholz”). The shares were issued by way of a Placement at 25 cents per share, a 25% premium to the closing share price on 4 November 2008, the day the Placement terms were set. Proceeds from the Placement totalled $11.25 million and will be applied to debt reduction. The Placement represents 10.16% of CMA’s issued capital prior to the Placement. In addition to the Placement, Scholz entered into a long-term strategic partnership with CMA to cooperate internationally. The partnership is expected to deliver a number of benefits to CMA including gaining access to Scholz’s network of operations and client base throughout Europe, China and the US. It is also anticipated that Scholz will assist in the development and establishment of CMA’s recently acquired Meretec technology throughout Europe and the United States. At CMA’s Annual General Meeting this week, shareholders approved the ratification of shares issued during 2008, replenishing the Company’s ability to issue up to 15% of its issued capital.
CMV Price at posting:
9.8¢ Sentiment: None Disclosure: Held
