WAM Microcap (ASX: $WMI) Share Purchase Plan and Placement announcement

WAM Microcap Limited (ASX: $WMI) has announced a Share Purchase Plan (SPP) and Placement to existing shareholders, raising $75.0 million. The capital will be invested in undervalued growth opportunities identified by the investment team while providing existing WAM Microcap shareholders the opportunity to increase their holding in the Company.

Executive commentary on the share purchase plan and placement

Chairman Geoff Wilson AO expressed, 'The WAM Microcap investment team has diligently constructed the investment portfolio, resulting in strong performance and total shareholder return since inception. We greatly appreciate the trust, loyalty, and support our shareholders have shown us since inception.' Lead Portfolio Manager Oscar Oberg added, 'We believe micro-cap companies are poised for recovery following the 2022 market sell-off and are optimistic for the year ahead.'

Summary of WAM Microcap's Share Purchase Plan and Placement

WAM Microcap (ASX: $WMI) is raising $75.0 million through a Share Purchase Plan and Placement, with the aim to invest in undervalued growth opportunities and provide existing shareholders the chance to increase their holdings. The Company's investment portfolio has shown strong performance, outperforming the S&P/ASX Small Ordinaries Accumulation Index. The SPP and Placement will only be offered to existing shareholders at the price of $1.455 per share, equal to the Company's estimated pre-tax net tangible asset backing per share as at 31 March 2024. Shareholders will have the opportunity to apply for the SPP via an online acceptance facility that will open on Wednesday, 3 April 2024 and close on Monday, 22 April 2024. The Company's larger capital base is expected to increase liquidity and reduce the fixed expense ratio, benefiting all shareholders. The proceeds of the additional capital will be invested in accordance with WAM Microcap's disciplined and proven investment process, focusing on delivering fully franked dividends, capital growth, and capital preservation over the medium-to-long term.