Sedgman raises $26M

At a 16.9% discount to the company’s five-day volume weighted average price, Sedgman said there was strong demand for the offer and that the placement was heavily over-subscribed.Settlement for the new shares is expected on August 26 with trading to start the next day.The new shares will participate in the final fully franked dividend for the recent financial year at 3c per share.“The additional capital raised from the placement will be used to fund targeted, value-adding, metals operations contracts and improve financial flexibility,” Sedgman managing director Mark Read said.Sedgman plans to launch a share purchase plan to retail shareholders, who can subscribe for up to $10,000 worth of shares at $1.30 each.The new ordinary shares issued will also be eligible for the final fully franked dividend of 3c per share.To participate, shareholders must be on the register by 7pm AEST this Monday.Yesterday, Sedgman posted a $7.1 million net profit for the 2008-09 financial year, a fall of 70% as its metal engineering arm ate into earnings.Sedgman shares are down 5 cents to $1.60 this morning after coming out of a trading halt.

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