6 Jul 2012

Rubicon shares jump after it raises $21m in share offer

7:28 am on 6 July 2012

Shares in Rubicon have jumped after the company successfully raised $21 million from shareholders to help meet the company's funding needs until early 2014.

Its shares gained 4 cents to close at 28 cents on Thursday, a jump of more than 16%.

Under the deal, Rubicon offered shareholders one share for every three held, at a price of 22 cents each.

The three largest shareholders, Knott Partners, Third Avenue Management, and Perry Capital, who together hold half the company, took up their full entitlement.

Rubicon says shares not taken by existing investors have been mopped up by other shareholders, who paid 2 cents more for the 6 million shares on offer.

The company says the take up is very pleasing and the money will be used to repay debt and extend the company's existing $US20 million banking facility.

Rubicon consists of forestry biotechnology firm ArborGen and a share of wood mouldings firm Tenon.