The Bailador Technology Investments (BTI) listed investment company (LIC) has entered into an agreement with two institutions that will generate $24.5 million of options investments.
The arrangement comes in the form of an option shortfall underwriting agreement with Pitt Capital Partners, a wholly owned subsidiary of Washington H Soul Pattinson (WHSP), and Morgans Corporate.
The deal was the result of an offer made to investors at the time of the BTI initial public offering whereby an equivalent number of attaching options were issued in association with the 62.5 million shares sold at the time, allowing those individuals the right to purchase a share in the LIC at $1.00 at any time up to 31 March.
In order to ensure a significant take-up of the options, BTI entered into an agreement under which Pitt Capital Partners will underwrite a $20 million option shortfall and Morgans Corporate will underwrite a $4.5 million option shortfall.
The degree of the shortfall in the take-up of the BTI options and the number of shares that will be issued as a result of these underwriting arrangements will be announced on 11 April.
Once the shares are issued at this date, WHSP will become a substantial shareholder of BTI.
“WHSP is Australia’s second oldest listed company and Australia’s leading diversified investment house,” BTI chair David Kirk said.
“We are delighted that they have chosen to make a substantial investment in BTI.
“We see this as a resounding vote of confidence in our investment strategy and recognition of our success to date.”