The company received applications for over 1.3 million shares at the offer price of $0.32, the same share price as the recent $18.5 million placement.
Shareholders were offered the option to subscribe for up to $5,000 worth of shares at the issue price, which 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 share purchase plan.
Proceeds will be applied to funding 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 previously received firm commitments for the earlier $18.5 million placement to acquire Reichdrill for US$8.9 million, as well as purchase new rigs.
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