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Global Energy Ventures Limited (ASX:GEV), operating in Africa, is an independent oilfield services company. It is pursuing multiple CNG projects to improve the probability of success and offering CNG project stakeholdersâ flexible commercial arrangements. Further, GEV is securing access to strategic gas resources that provides for an integrated CNG gas supply solution and maintaining the highest standards of efficiency, safety and environmental responsibility by employing world-class management who are leaders in their chosen discipline.
Today, GEV has announced that it has successfully completed a placement to raise A$4.7 million before costs by issuing of a total of 31,333,333 new fully paid ordinary shares at A$0.15 per share. Foster Stockbroking Pty Ltd has been appointed by GEV to act as a Sole Lead Manager to this placement.Â
Under the placement, 29,933,333 ordinary shares were issued to institutional and sophisticated investors at a price of A$0.15 per share raising A$4.490 million (before costs). After looking at the support by existing institutional and sophisticated investors with several new parties becoming shareholders, the Board elected to increase the size of the placement with the Directors to take up an additional A$210,000 in shares by issuing a further 1,400,000 ordinary shares at a price of A$0.15 per share placing GEV in a strong financial position to implement its strategy in 2019.
The share issuance will take place in two tranches, the first tranche of issuance of 29,933,333 ordinary shares under ASX Listing Rule 7.1 and the second tranche of 1,400,000 ordinary shares which is subject to shareholder approval.
The new 31.33 million shares, on the issue, will be ranked equally with the existing ordinary shares, and after the completion of all formalities in due course, GEV will apply for the official quotation of these shares.
Global Energy will utilise the A$4.7 million fund to finalise the selection of shipyards, technical specification, evaluation, and contract negotiations of ship financing options for 4 CNG Optimum 200 ships. It will develop global CNG opportunities and deliver GEVâs target through this placement to achieve a Final Investment Decision (FID) for a CNG Optimum 200 ship in 2019. Further, GEV will also be using the proceeds to fund its working capital.
The directors of GEV are thankful to their existing and new investors for their overwhelming support to the placement. The Directors are already significant shareholders in GEV, and through their participation in the placement, they demonstrated their commitment to the construction of CNG Optimum ships and the execution of our global marine CNG business strategy.
On 1 February 2019, GEV had put its securities under trading halt on account of this placement news which got lifted today post the release of the news. The GEV stock is currently trading at A$0.170 (at the close of the market on 5 February 2019) with an upward movement of 3.03% during the day. It has yielded a negative return of 15.38% over the past three months. GEV currently has approx. 326.38 million shares outstanding with a market cap of circa A$53.85 million.
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