The placement comprised the issue of 5 million shares at $0.22 per share, a 5.83% premium to the volume weighted average price of ASF shares in the preceding five trading days.
The issue price also represents a 33% premium to the most recently traded share price of $0.165.
ASF intends to use the funds for additional working capital to enhance its existing businesses and investments.
The company is currently undertaking an on-market share buyback program which it has recently extended, demonstrating confidence and helping ASF increase its earnings per share profile.
In the past 12 months, ASF has bought back 10.1 million shares at an average price of A$0.1793 per share, with the company able to buy back up to 30.4 million shares over the next 12 months.
Background on ASF Group
The acronym "ASF" stands for Australia Sino Focus.
Investments are made in areas where the two countries have synergy. To date these investments have been largely in the resources sector.
ASF Group has introduced $37.5 million investment from its Chinese network partners reflecting the strength of its connections and reputation of Min Yang in China.
Reflecting the strong Chinese connections, five directors are based in China, including Hong Kong and Macau, and three are in Australia.
Profits are generated mainly from these transactions (including asset sale or sell down) rather than by managing operating businesses.
At the end of the first half of the 2013 financial year ASF held $28.2 million in net assets and cash.
Raising cash at a premium in today's market is no mean feat and demonstrates the investor confidence ASF is gaining in its Australian-China business model.
A 33% premium over the last traded share price is a solid result.
ASF is demonstrating its confidence by undertaking a recently extended share buyback program that will help increase its earnings per share profile.
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