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Comet Ridge Limited (ASX:COI) has issued the official offer booklet for its Share Purchase Plan (SPP), allowing eligible shareholders to subscribe for up to $30,000 worth of new shares at $0.1025 each — matching the price of its recent $40 million institutional placement. The SPP, open from 3 July 2026 until 17 July 2026, seeks to raise up to $5 million to support the company’s purchase of the remaining 42.86% stake in the Mahalo Gas Project from Santos QNT Pty Ltd and to advance the project toward a Final Investment Decision. Eligible shareholders will also receive one free attaching unlisted option for every two SPP shares subscribed, exercisable at $0.15 and expiring on 30 June 2028, subject to shareholder approval. Together, the placement and SPP enable Comet Ridge to consolidate complete ownership of its flagship Queensland coal seam gas asset.
Key Points
- Company: Comet Ridge Limited (ASX:COI)
- SPP price: $0.1025 per share — identical to the institutional placement price, representing a 21.2% discount to the closing price of $0.13 on 19 June 2026
- SPP target raise: up to $5 million (applications may be scaled back at the company’s discretion if oversubscribed)
- Each eligible shareholder may subscribe for up to $30,000 in new shares
- Free attaching unlisted options: one option per two SPP shares, exercisable at $0.15, expiring 30 June 2028 (subject to shareholder approval)
- Institutional placement: $40 million raised in two tranches at $0.1025 per share from institutional and sophisticated investors
- Funds directed toward completing acquisition of Santos’s 42.86% interest in the Mahalo Gas Project and advancing the project to Final Investment Decision
- General Meeting expected around 6 August 2026 for shareholder approval of Tranche 2, Placement Options, and SPP Options
- Key dates for investors: SPP closes 17 July 2026, General Meeting outcome around 6 August 2026, and Tranche 2 settlement
Comet Ridge Opens SPP for Eligible Shareholders at Placement Price of $0.1025
Comet Ridge Limited has officially launched its Share Purchase Plan, enabling eligible shareholders to invest alongside institutional investors at $0.1025 per share. The SPP runs from Friday, 3 July 2026, through Friday, 17 July 2026, with a maximum subscription of $30,000 per shareholder across this SPP and any similar offers in the past 12 months.
The $0.1025 offer price represents a 21.2% discount to the $0.1300 closing price on 19 June 2026 and a 19.4% discount to the five-day volume weighted average price before the announcement. Eligible shareholders will not incur brokerage or transaction fees for participating. The SPP is uncapped at $5 million, with the company reserving the right to scale back applications if oversubscribed.
Details of the $40 Million Institutional Placement in Two Tranches
On 24 June 2026, Comet Ridge announced firm commitments to raise $40 million before costs via a two-tranche private placement to Australian and international institutional and sophisticated investors. The placement involved issuing 390,243,902 new fully paid ordinary shares at $0.1025 each. Tranche 1, unconditional, raised approximately $30.6 million through 298,419,512 shares issued under ASX Listing Rules 7.1 and 7.1A, with settlement on 30 June 2026 and shares issued on 1 July 2026.
Tranche 2, conditional on shareholder approval under Listing Rule 7.11, targets approximately $9.4 million through 91,824,390 shares. Approval is expected at a General Meeting around 6 August 2026, with settlement anticipated five to seven business days post-meeting if approved. All placement shares rank equally with existing Comet Ridge shares.
Director and Management Investment in Tranche 2
The remaining $129,000 of Tranche 2 participation is from management not subject to Listing Rule 10.11. This insider participation at the placement price aligns management interests with shareholders, though investors should seek independent advice before investing.
SPP Sweetened with Free Attaching Options Exercisable at $0.15
Eligible shareholders subscribing under the SPP will receive one free attaching unlisted option for every two shares subscribed, exercisable at $0.15 and expiring 30 June 2028, subject to shareholder approval. These options, termed SPP Options, grant the right to acquire one fully paid ordinary share per option if exercised.
The SPP Option Offer is made under a separate prospectus accompanying the offer booklet and requires shareholder approval at the General Meeting around 6 August 2026. Institutional placement participants receive equivalent Placement Options under the same terms and approval conditions. If approval is not granted, these options will not be issued.
Funding the Acquisition of Santos’s Remaining Stake in the Mahalo Gas Project
The combined capital raising — the $40 million placement plus the $5 million SPP — primarily funds the acquisition of Santos QNT Pty Ltd’s remaining 42.86% interest in the Mahalo Gas Project. The transaction includes a firm cash consideration balance of $18 million, approximately $3.4 million in stamp duty, assumption of an estimated $1.1 million rehabilitation cost bond, Santos’s share of joint venture cash calls from 15 November 2025, and Comet Ridge’s own $4 million cash calls for the joint venture.
Acquiring full ownership of the Queensland coal seam gas Mahalo Gas Project removes joint venture complexities and grants Comet Ridge full control over development decisions, timelines, and capital allocation. The project is progressing toward a Final Investment Decision, although no specific timeline was disclosed beyond confirming proceeds will fund the project to FID.
Allocation of Proceeds Beyond the Santos Transaction
In addition to covering the Santos Transaction costs, proceeds will support Comet Ridge’s general working capital and capital raising expenses. The offer booklet does not detail the exact breakdown among these categories beyond the transaction cost components.
Shareholders seeking detailed capital allocation may refer to supplementary materials accompanying the General Meeting notice expected before 6 August 2026.
SPP Offer Period, Contact Information, and Participation Instructions
The SPP is open from Friday, 3 July 2026, to Friday, 17 July 2026. Eligible shareholders must submit applications within this period. The share registry, Computershare Investor Services Pty Limited, can be reached at 1300 552 270 (Australia) or +61 3 9415 4000 (international) between 8:30am and 5:00pm AEST on business days during the offer. Comet Ridge is also available at (07) 3221 3661 (Australia) or +61 7 3221 3661 (international) from 8:30am to 4:30pm AEST during the offer.
The offer booklet is not financial advice and does not consider individual circumstances. Comet Ridge recommends shareholders seek independent financial and tax advice before investing. Applicants acknowledge the risk that the market price may be below the $0.1025 SPP price when shares are issued.
Upcoming General Meeting Around 6 August 2026
The General Meeting expected on or about 6 August 2026 is a critical milestone. Shareholders will vote on approval of Tranche 2 placement shares under Listing Rule 7.11, the issue of Placement and SPP Options, and director participation under Listing Rule 10.11. Failure to pass these resolutions could impact the capital raising.
If approved, Tranche 2 settlement is expected five to seven business days after the meeting, releasing approximately $9.4 million from the placement. SPP shares will be issued after the offer closes on 17 July 2026, subject to standard processing; no exact issue date was provided.
Geographic and Regulatory Restrictions on the SPP
The SPP is not available to shareholders residing in the United States, and the offer booklet is not for distribution outside Australia and New Zealand. These restrictions comply with relevant securities regulations. Shareholders outside these countries, including the U.S., are ineligible for the SPP.
Comet Ridge structured the offer to comply with ASX Listing Rules and Australian corporations law, using placement capacity for Tranche 1 and seeking shareholder approval for Tranche 2. The SPP is offered under relief provisions of the Corporations Act 2001, allowing capital raising from existing shareholders without a full prospectus for shares. The SPP Options are offered under a separate prospectus.
Key Investor Dates as Comet Ridge Advances Toward Mahalo FID
Investors should monitor the SPP closing on 17 July 2026 to gauge retail participation and the total amount raised. The General Meeting around 6 August 2026 will be pivotal for approval of Tranche 2, option issuance, and director participation.
Strategically, Comet Ridge’s focus is completing the Santos acquisition and progressing the Mahalo Gas Project to a Final Investment Decision. No specific FID or production dates were disclosed in the booklet. Investors seeking further details should review prior company updates and future announcements. The immediate market reaction to the SPP launch was not clear at the time of this report.
