Legacy Iron Ore, the Australian arm of state-owned NMDC, has cancelled its rights issue citing 'weak market' conditions.
Legacy Iron had earlier announced that it intends to raise AUD 25 million by way of 3 for 4 non-renounceable entitlement offer that closed on Monday.
'Due to recent share market volatility, Legacy Iron wishes to advise that the board has resolved to cancel the entitlement offer and corresponding replacement prospectus lodged with ASIC (Australian Securities and Investments Commission) and ASX on 18 July, 2013 (Prospectus), effective immediately.'
'The board will continue to review and assess funding options available to the company in order to meet its future capital requirements, including development of the potentially world-class Mount Bevan iron ore joint venture project,' Legacy said in filing with ASX (Australian Securities Exchange).
A senior official of NMDC said that as the current market price is lower than the offer price they wanted to wait for some time before they hit the market once again. The Legacy Irons Offer Price was fixed at 5.7 cents per new share. Whereas the share price dropped since then and currently trading at 5.4 cents by touching 5.0 cents apiece at one point of time.
Legacy Iron once again will approach ASIC with fresh offer document and the price will be fixed on the market conditions then, the official added.
Legacy Iron had earlier announced that it intends to raise AUD 25 million by way of 3 for 4 non-renounceable entitlement offer that closed on Monday.
'Due to recent share market volatility, Legacy Iron wishes to advise that the board has resolved to cancel the entitlement offer and corresponding replacement prospectus lodged with ASIC (Australian Securities and Investments Commission) and ASX on 18 July, 2013 (Prospectus), effective immediately.'
'The board will continue to review and assess funding options available to the company in order to meet its future capital requirements, including development of the potentially world-class Mount Bevan iron ore joint venture project,' Legacy said in filing with ASX (Australian Securities Exchange).
A senior official of NMDC said that as the current market price is lower than the offer price they wanted to wait for some time before they hit the market once again. The Legacy Irons Offer Price was fixed at 5.7 cents per new share. Whereas the share price dropped since then and currently trading at 5.4 cents by touching 5.0 cents apiece at one point of time.
Legacy Iron once again will approach ASIC with fresh offer document and the price will be fixed on the market conditions then, the official added.