Shareholder Approval Pending for ARC Funds’ New Options After Capital Raise
ARC Funds Limited has completed a $737,750 equity placement, issuing new shares with free attaching unlisted call options to investors and its Managing Director. The funds will support working capital and debt reduction as the company advances its growth strategy.
- Placement of 5.89 million shares at 11.5 cents each with free attaching unlisted call options
- 521,739 shares and options issued to Managing Director Scott Beeton on same terms
- Funds earmarked for working capital and debt reduction
- Options exercisable at 11.5 cents, expiring December 15, 2026, pending shareholder approval
- Placement price at a premium to recent volume-weighted average price
Equity Raise Details
ARC Funds Limited (ASX, ARC) has successfully completed a capital raise totaling $737,750 through a placement of new shares accompanied by unlisted call options. The company issued 5,893,479 new shares at 11.5 cents apiece to wholesale and sophisticated investors, with a free attaching 1-for-1 unlisted call option exercisable at the same price. Additionally, Managing Director Scott Beeton subscribed for 521,739 shares and options on identical terms.
Strategic Use of Funds
The capital injection is intended to bolster ARC Funds’ working capital and facilitate debt reduction, providing the company with greater financial flexibility as it continues to execute its strategy. This strategy focuses on expanding product offerings and enhancing financial services distribution capabilities to build a sustainable and scalable business model.
Option Terms and Shareholder Approval
The unlisted call options attached to the placement shares carry an exercise price of 11.5 cents and expire on December 15, 2026. However, the issuance of these options remains subject to shareholder approval at the company’s upcoming meeting, expected in February 2026. If approved, the options will allow holders to acquire additional shares on favorable terms, potentially providing upside if ARC Funds’ share price appreciates.
Market Reception and Pricing
The placement price of 11.5 cents per share represents a premium to the 15-day volume-weighted average price of 11 cents as of December 8, 2025. This premium pricing suggests investor confidence in ARC Funds’ prospects and the value of its growth initiatives. The company also welcomed new shareholders through this placement, signaling growing market interest.
Next Steps and Governance
Legal advisers K&L Gates and settlement broker Morrison Securities facilitated the transaction, with a 6% settlement broker fee payable in cash. The company’s board has authorised the announcement, and investors will be watching closely for the outcome of the shareholder meeting, which will determine the final structure of the option issuance and potentially influence ARC Funds’ capital structure going forward.
Bottom Line?
ARC Funds’ successful raise marks a pivotal step in its growth journey, but shareholder approval will be key to unlocking the full potential of the attached options.
Questions in the middle?
- Will shareholders approve the issuance of the unlisted call options at the upcoming meeting?
- How will the new capital impact ARC Funds’ debt levels and operational flexibility?
- What are the potential dilution effects if all options are exercised by December 2026?
