Arafura cancels $74m rights issue

Arafura Resources todhengshui decheng machinery equipment co ltday cancelled a $74 million rights issue after its share price fell below the offer price amid continuing volatility in global markets.

Arafura said it would instead hire a corporate adviser to help identify other ways to raise money needed to complete a bankable feasibility study on its Nolans project in Australia's north. Perth-based Arafura said it has $45m for its immediate needs. The company had planned to offer one new share for every three currently held at a price of 60 cents each, with the offer closing yesterday. Its shares have traded below the offer price for much of the month and closed today at 46.5c, down 3.1 per cent on the day. "At a special board meeting held today, the directors determined it would be unreasonable to those shareholders who...