$25M capital raise secured with $15M cornerstone investment

This morning our fertiliser and green ammonia/hydrogen Investment Minbos Resources (ASX:MNB) came out of a trading halt after completing a capital raise.

MNB managed to raise $25M via a placement at 11c per share with a $15M cornerstone investment from a syndicate of investors led by the chairman of the world’s largest battery anode producer.

The syndicate is led by Hong Kong based Mr. Liang Feng who is also founder and chairman of Shanghai listed “Shanghai Putailai New Energy Technology” which has a market cap of US$18 billion and is the world’s largest anode materials maker for lithium batteries.

We also noticed that MNB’s directors and management team are also participating in the capital raise for a total of $845k.

We like seeing management teams that have skin in the game and see this as a vote of confidence from the managers leading our Investment in MNB.

The capital raise will see MNB issue a total of 227,272,728 shares split as follows:

• 131,414,473 shares to be issued on the 20th of July 2022.
• 95,858,255 shares to be issued after shareholder approvals in August.

In the short term, we expect to see the share price hold around the 11c per share level as some of the investors who participated in the capital raise are likely to sell on market and take their profits.

With the market looking a little fragile, we suspect there will be more of these type investors than we are otherwise used to seeing.

That being said, we think the big glowing positive from today’s announcement is that MNB was able to raise this much capital in an otherwise tough market.

For us, this level of funding underlines the serious potential that MNB’s fertiliser and green ammonia/hydrogen projects have.