Firstfolio moves towards raising up to $56 million via placement 

(MENAFN - ProactiveInvestors - Australia) Firstfolio (ASX:FFF) is closer to raising up to 56 million via a placement after completion of due diligence by private investor consortium AC&E Capital.

The two will now iron out the terms of a final binding heads of agreement likely to be inked towards the end of January.

Under the indicative terms of the deal, Firstfolio will place shares worth 50 million with AC&E Capital at an issue price of 0.035 per share, representing a 120% premium to the 90 day volume weighted average price at at 1 November 2012.

Upon the completion of the institutional placement, Firstfolio will undertake a 4 for 5 renounceable rights offer to raise up to 6.19 million at 0.01 per share, representing a discount of 37.5% to the 90 day VWAP as at 1 November, 2012.

If an offer is made, Firstfolio has 5 business days to either accept or reject the offer.

Firstfolio offers a diversified range of mortgage solutions across the full cycle of loan through a network of brokers and affiliates.

Much of its cash flow comes from the residential mortgages sector, where it offers aggregation, wholesale lending and management services.

Its loans under management have grown to 20 billion since it was first founded in 2006.