Aspen Group, whose model is aimed at households that cannot afford more than $400 weekly rent or $400K purchase price, went into a trading halt last Tuesday and normal trading resumed yesterday (Monday).
The Sydney-based Group, which owns and operates land lease communities, residential homes and holiday parks, raised $36.34 million from investors in just 24 hours.
The strong interest proves that investors are still keen on the sectors despite the negative sentiment in residential housing, given increasing interest rates and construction costs.
Investment bank MA Moelis and stockbroker Taylor Collison helped structure and underwrite an equity raising.
The institutional placement was for 23 million new fully paid ordinary Aspen securities at $1.58 each, which represents 14.8% of existing company securities on issue. Aspen shares traded at $1.61 on Friday.
Aspen Group shows the financial difference between land lease and retirement living
“The Placement was strongly supported by existing institutional and sophisticated securityholders and new institutional investors,” said Aspen Joint CEO David Dixon (pictured).
“The new equity raising, and Aspen’s recent scrip-based acquisition of Coorong Quays (SA), have significantly reduced gearing and positioned the company for continued growth.
“Profitability has increased materially across all of Aspen’s segments so far in FY23.”
Aspen Group is also offering a security purchase plan to eligible securityholders who can acquire up to $30,000 worth of New Securities at a fixed price of $1.58 per New Security. Further information will be released to the ASX.
