• Binding commitments received to raise $10.0 million at $0.125 per share
• Issue price represents a 10.5% discount to the 15-day VWAP and a 2% premium to the 30-day
• Strong demand from offshore institutional shareholders
• Company now fully funded to complete Tiwi Green Hydrogen Project feasibility study
• Share Purchase Plan targeted to raise a further $2 million vv
Global Energy Ventures Ltd is pleased to announce that it has received firm commitments to raise $10.0 million (before costs) via a share placement to institutional, sophisticated and professional investors at $0.125 per share, with 80.0 million new fully-paid ordinary shares to be issued (Placement). The Company will also undertake a non-underwritten share purchase plan (SPP) to raise circa $2.0 million at the same issue price as the Placement.
The proceeds of the Placement will be used to fund the following:
> Tiwi Green Hydrogen Project feasibility study;
> Ongoing engineering and approvals for the pilot compressed hydrogen ship;
> Administration costs; and
> General working capital.
GEV Managing Director and CEO, Martin Carolan, commented: “The Company is delighted to have attracted a number of new offshore institutional investors to the register, along with the ongoing support of existing and new Australian funds. The Company’s launch into the upstream green hydrogen production with the Tiwi Green Hydrogen Project provides a unique investment opportunity as the Company positions compression as a first mover advantage into the production, storage and transport of hydrogen. The capital raising will accelerate the
development of the Tiwi Green Hydrogen Project while also supporting our ongoing engineering, approvals and commercialization for our proprietary ship design.”
Canaccord Genuity (Australia) Limited acted as Lead Manager and Bookrunner to the Placement. Evolution Capital Pty Ltd acted as Co-Manager to the Placement.
The Company received strong support from existing and new institutional investors.
The Placement will comprise the issue of approximately 80.0 million new fully paid ordinary shares (New Shares) at an issue price of $0.125 per share, which represents a:
• 10.5% discount to the 15-day Volume Weighted Average Price (VWAP) of $0.140; and
• 2.0% premium to the 30 day VWAP of $0.122 as at 8 November 2021.
The Placement will settle in one tranche. The New Shares will be issued under the Company’s existing placement capacity under ASX Listing Rules 7.1 (34,413,178 New Shares) and 7.1A (45,586,822 New Shares). Settlement of the Placement is expected to occur on Wednesday, 17 November 2021. The New Shares will rank equally with the Company’s existing shares on issue.
Share Purchase Plan
GEV also intends to offer a non-underwritten share purchase plan (SPP) to existing eligible shareholders to raise up to approximately $2.0 million. The SPP allows eligible shareholders, being those shareholders that are residents of Australia or New Zealand that held Company shares at 7:00pm on 10 November 2021 (Record Date), to apply for up to $30,000 worth of New Shares without incurring any brokerage or transaction costs.
New Shares will be offered under the SPP at $0.125 per share, being the same issue price as the Placement.
The amount raised under the SPP remains subject to the Company's absolute discretion, with the Company reserving the right to accept total applications of over $2.0 million or to scale back applications. The SPP will be subject to eligibility criteria and other terms and conditions which will be set out in the SPP booklet to be lodged on the ASX on or about 22 November 2021 and dispatched to shareholders on the same day. New Shares to be issued under the SPP will rank equally with existing shares in the Company.