AMA Group (ASX: $AMA) successful Equity Raising

AMA Group Limited (ASX: $AMA) has announced the successful completion of its fully underwritten institutional placement and accelerated institutional entitlement offer. The Equity Raising, which includes a pro rata accelerated renounceable entitlement offer of new fully paid ordinary shares, aims to raise funds to repay existing senior bank debt, settle expected redemptions on the convertible note put option, and support future debt amortisation payments, repayment of accrued PIK interest on senior debt, transaction costs, future working capital, and growth requirements. The new shares will be issued at a price of A$0.042 per share, representing discounts to the last traded price, 10-day VWAP, and theoretical ex-rights price of AMA Group shares.

Executive Commentary on Equity Raising

The successful completion of the Equity Raising demonstrates the strong support from both existing and new eligible shareholders, including domestic and offshore investors. The funds raised will significantly strengthen our financial position, enabling us to address existing debt obligations and provide the necessary capital for future growth initiatives. We are pleased with the outcome and look forward to the positive impact this will have on our corporate strategy and long-term prospects.

Summary of AMA Group's Equity Raising

AMA Group's Equity Raising, comprising a placement and entitlement offer, has raised approximately $32.5 million from the placement and gross proceeds of approximately $51.4 million from the institutional entitlement offer. The retail component of the entitlement offer is expected to raise a further approximately $41.0 million. The use of proceeds from the Equity Raising includes debt repayment, settlement of expected redemptions, future debt amortisation payments, and support for growth requirements. The successful completion of the Equity Raising is expected to enhance the company's financial position and provide the necessary resources to pursue its corporate strategy and growth objectives. AMA Group's shares are expected to resume trading on ASX from market open today.