Shares in Valad Property have been placed in a trading halt pending the outcome of a capital raising.
"Valan request that the trading halt remains in place until the earlier of commencement of trading on 25 September 2009 and when Valad makes an announcement regarding the outcome of the capital raising," it said in a statement today.
Valad shares last traded at 16 cents.
Valad later said it planned to raise $59.9 million, under a fully underwritten equity raising.
It said the proceeds will be used to settle the Scarborough Vendors Group deferred liability of STG29.5 million.
The raising comprises the issue of new stapled securities at 10 cents each.
There will be a one-for-four accelerated non-renounceable entitlement offer to raise $40.2 million and an institutional placement to raise $19.3 million.
The rights offer is expected to raise $16.8 million from institutions and $23.4 million from retail investors.
"In the recent past we have received feedback from a number of our existing investors indicating they would be prepared to support raising equity in order to pay down liabilities such as the contracted payment to the Scarborough Vendors Group," Valad managing director Peter Hurley said.
"The Offer provides existing Valad securityholders with the opportunity to participate at a discount to Valad's current trading price and will strengthen Valad's financial position".
AAP
