AnteoTech (ASX: ADO) has entered into an underwriting agreement with MST Financial Services covering the exercise of up to 214,285,714 unexercised ADOO listed options.
Each option carries an exercise price of $0.035 and expires on 31 May 2026.
The underwriting agreement provides AnteoTech with certainty over the issue of a minimum 214,285,714 shares and the raising of about $7.5 million before offer costs.
This figure is based only on the underwritten shares and excludes any unprocessed exercise forms already received.
AnteoTech could issue up to 286,628,688 shares and raise about $10 million if all options are exercised.
Underwriting Agreement
Under the agreement, MST Financial Services must subscribe, or procure subscriptions, for new fully paid ordinary shares equal to the number of underwritten options, less any shares issued to option holders who exercise before the expiry date.
The arrangement means any shortfall from option holders not exercising their options will be taken up through the underwriting structure.
MST Financial Services has also entered into sub-underwriting arrangements with various sophisticated and professional investors.
AnteoTech said none of the sub-underwriters are related parties or associates of related parties of the company.
AnteoTech expects to issue the underwritten shares and all other shares required to be issued on exercise of the options by 5 June 2026, subject to board discretion to change that date if required.
Fee and Termination Conditions
AnteoTech will pay MST Financial Services a fee equal to 6% of the underwritten amount under the agreement.
The underwriting agreement includes a schedule of termination events covering matters such as breach, changes affecting the company’s ability to issue shortfall shares, certain regulatory actions, market disruption, banking moratoriums, index falls, and specified geopolitical or financial market developments.
Some termination rights are subject to a materiality qualification, requiring MST Financial Services to have reasonable and bona fide grounds to believe the event could give rise to material liability, materially affect the offer outcome or trading price, or result in a material adverse change in AnteoTech’s financial position, performance or prospects.
AnteoTech supplies advanced material solutions to the battery materials and life sciences markets, with products spanning high silicon anode materials, ceramic coated separators, next-generation anode formulations, and activation materials for vaccine and diagnostic test developers.
