This is the same price as the shares under the $18.5 million placement and represents a 16.2% discount to the volume weighted average price of Hughes' shares over the five trading days prior to the announcement of the SPP.
Proceeds will be applied to fund the acquisition of 96% of Reichdrill Inc., Hughes major supplier of blast hole production rigs, and will also fund additional new production rigs to accelerate growth.
Hughes' directors plan to participate in the SPP but will not do so if it its oversubscribed.
The SPP is not underwritten and Hughes reserves the right to exercise its absolute discretion in respect of acceptance of applications.
Baillieu Holst has been appointed as the Broker for the SPP.
Hughes has received firm commitments for a $18.5 million placement to acquire rig provider Reichdrill for US$8.9 million and acquire new rigs.
The first tranche of 30.6 million shares to raise $9.8 million will be issued on 21 March 2013 while shareholder approval will be sought at a general meeting on or about 22 April 2013 for the second tranche of 27.2 million shares to raise $8.7 million.
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