Proven raises over $1 billion in rights issue

PROVEN Investments Limited (PIL) effectively raised US$10.3 million ($1.1 b) in its rights issue which closed last Friday, the company indicated.

The company will use the proceeds to finance future undisclosed acquisitions.

“Proven Investments Limited rights issue closed on Friday, May 16, 2014 and the Offer was fully subscribed,” stated management in a release to investors on the Jamaica Stock Exchange on Monday. Calls for clarity

on acquisitions went unanswered up to press as PIL head Chris Williams was in a board meeting. The company promised to send further information on the issue which was not immediately available up

to press.

The company offered investors one new share for existing four shares at a subscription price of US$0.14.

“Proven Investments Limited is seeking to raise up to US$10.3 million by offering to its shareholders as recorded on the share registry records of the company on the record date,” stated the company’s prospectus.

The net offer proceeds will build the capital base at the company which stood at some US$35 million in total stockholders equity, prior to the rights issue.

“The company intends to use the capital raised to pursue expansion and acquisition opportunities,” stated the prospectus.

Proven intends to provide shareholders with above average US dollar fixed income returns, international portfolio diversification,tax efficient investments and “excellent currency hedge”.

Proven stated, by way of illustration, if a shareholder owns 31,495 ordinary at the record date that the shareholder could purchase a maximum of 7,873 shares in the rights issue. PIL had 294 million ordinary and 200 million preference shares prior to the rights issue which will create “an additional approximately 73.7-million ordinary shares” in the capital of the business.