The Syrah Resources Ltd (ASX: SYR) share price has returned from its trading halt and crashed to a multi year low this morning.
The graphite producer's shares sank as much as 11.5% lower to 87 cents. This latest decline has stretched their 12-month decline to a very disappointing 69%.
Why is the Syrah share price sinking lower?
On Wednesday Syrah requested a trading halt after announcing the execution of a convertible note deed and an underwritten entitlement offer to raise approximately $111.6 million.
This comprised a $55.8 million convertible note to be issued to AustralianSuper and approximately $55.8 million via a fully underwritten pro rata accelerated non-renounceable entitlement offer.
This morning the company announced the successful completion of the institutional component of the entitlement offer. According to the release, it raised approximately $25 million at 81 cents per share. This was a discount of 18% to the last close price.
Management revealed the offer was well-supported with a take up rate of approximately 82% amongst eligible institutional shareholders.
Furthermore, the shortfall was oversubscribed, reflecting strong demand received from new and existing institutional shareholders.
The company will now seek to raise the remainder from eligible retail shareholders via the retail component of the entitlement offer. As with the institutional component, these shares will be offered at 81 cents per share.
Syrah MD & CEO Shaun Verner said: "We appreciate the support demonstrated by our long-term institutional shareholders. We remain focussed on the delivery of the world class Balama Graphite Operation and the progression of our Battery Anode Material strategy, which underpin our objective of maximising value for our shareholders."
Elsewhere in the battery materials industry today, the Galaxy Resources Limited (ASX: GXY) share price and the Pilbara Minerals Ltd (ASX: PLS) share price are both trading within sight of their own multi-year lows.
