Comet Ridge Launches $5 Million Share Purchase Plan at $0.1025 to Finance Acquisition of Mahalo Gas Project Stake

Comet Ridge Announces SPP at $0.1025 Per Share, Aligning with Institutional Placement

Comet Ridge Limited commenced its Share Purchase Plan on 3 July 2026, offering eligible shareholders the chance to invest at the same $0.1025 per share price as institutional investors. This price represents a 21.2% discount to the closing price of $0.1300 on 19 June 2026, the last trading day before the capital raise announcement. The SPP aims to raise approximately $5 million before costs.

The offer is available to shareholders with registered addresses in Australia or New Zealand as of 7:00pm AEST on 23 June 2026. Eligible shareholders may apply for up to $30,000 in new fully paid ordinary shares without brokerage, commission, or transaction fees. These new shares will rank equally with existing shares, ensuring no dilution of shareholder rights.

Offer Price Discount Compared to Recent Trading Activity

The $0.1025 offer price reflects a significant discount relative to recent trading metrics. It is 21.2% below the closing price of $0.1300 on 19 June 2026, 19.4% below the five-day volume weighted average price (VWAP) of $0.1272, and 22.6% below the 15-day VWAP of $0.1324, all calculated up to 19 June 2026.

This discount aligns with standard market practices for capital raisings, providing parity between retail shareholders and institutional participants. Shareholders confident in the Mahalo Gas Project's long-term value have an opportunity to increase their holdings at the same terms as institutional investors. Prospective participants should carefully review the SPP Booklet and seek independent financial advice if uncertain.

Complimentary Attaching Options Offered to SPP Participants

Participants in the SPP will receive one free attaching unlisted option for every two shares subscribed and issued under the plan. These options, termed SPP Options, are exercisable at $0.15 per share and expire on 30 June 2028, each entitling the holder to acquire one fully paid ordinary share upon exercise.

The SPP Options are offered under a separate Options Prospectus provided alongside the SPP Offer Booklet. Importantly, issuance of these options requires shareholder approval at an upcoming General Meeting. Shareholders considering participation primarily for the option entitlement should note this condition. Both the SPP Booklet and Options Prospectus have been available to eligible shareholders since 3 July 2026.

Overview of the $40 Million Capital Raising: Tranche 1 Completed, Tranche 2 Awaiting Approval

The SPP is part of a broader $40 million capital raising announced on 24 June 2026, comprising a two-tranche private placement to institutional and sophisticated investors at the same $0.1025 per share price.

Tranche 1, the unconditional portion, raised approximately $30.6 million through the issue of 298,419,512 shares under the company's placement capacity, with shares issued on 1 July 2026. Tranche 2, involving approximately $9.4 million through 91,824,390 shares, is conditional on shareholder approval under ASX Listing Rule 7.1. Approval will be sought at a General Meeting around 6 August 2026, with settlement and allotment expected in mid-August, subject to approval.

Use of Funds: Acquiring Santos's Remaining 42.86% Interest in Mahalo Gas Project

The combined proceeds from the placement and SPP will finance the acquisition of Santos QNT Pty Ltd's remaining 42.86% interest in the Mahalo Gas Project, known as the Santos Transaction. The settlement costs include $18 million in firm cash consideration, $3.4 million in stamp duty, and an assumed Estimated Rehabilitation Cost bond valued at $1.1 million.

Additionally, funds will cover Santos's 42.86% share of Mahalo Joint Venture cash calls from 15 November 2025 and $4 million for Comet Ridge’s own cash calls. Remaining proceeds will support advancing the Mahalo Gas Project to Final Investment Decision (FID), general working capital, and capital raising expenses. Completing the Santos Transaction will grant Comet Ridge full ownership of its flagship development asset.

Comet Ridge’s Mahalo Gas Project and Its Significance for East Coast Australian Gas Supply

Comet Ridge positions itself as an Australian energy company focused on developing natural gas resources for the constrained east coast Australian market. The Mahalo Gas Hub project comprises low-cost, sales-specification natural gas blocks near Gladstone, Queensland, with reserves featuring very low CO2 content.

Besides Mahalo, Comet Ridge holds 100% interests in permits including Mahalo East, Mahalo Far East, and Mahalo Far East Extension, which may be developed sequentially to supplement initial production. The company also maintains a large exploration position in the Galilee Basin and a New South Wales block in partnership with Santos, located north of the Narrabri project. Its strategic aim is to transform Mahalo Gas Hub assets into significant gas supply for the east coast market, with reaching FID a key milestone.

SPP Timeline: From Offer Close to August General Meeting

The SPP opened on 3 July 2026 and is set to close on 17 July 2026, though Comet Ridge reserves the right to close early without notice and may scale back applications if demand exceeds the $5 million target. Shareholders are encouraged to apply early.

Results, including any scale-back details, will be announced on 23 July 2026, with share allotment on 24 July 2026. The General Meeting to approve Tranche 2 placement, placement options, SPP Options, director participation, and Santos consideration shares is expected in early August 2026. Settlement and allotment of Tranche 2 shares are anticipated mid-August, subject to approval. The timetable is indicative and may change in compliance with laws and ASX Listing Rules.

Considerations on Scale-Back and Early Closure Risks

While the SPP offers a valuable opportunity for eligible shareholders to increase holdings at institutional prices, Comet Ridge may scale back applications if demand exceeds the $5 million cap, potentially reducing allocations for those applying for the full $30,000. The company may also close the SPP early without notice, so shareholders should not assume the full application period is guaranteed.

Eligible shareholders should thoroughly review the SPP Booklet and consult financial advisers if uncertain about participation. Both the SPP Booklet and Options Prospectus have been available since 3 July 2026.

Upcoming General Meeting in Early August 2026: A Key Event for Investors

The General Meeting, expected on or about 6 August 2026, is a critical upcoming event. Shareholders will vote on approvals for the conditional Tranche 2 placement of approximately $9.4 million, placement options, SPP Options, director participation, and shares issued to Santos as transaction consideration.

The meeting’s outcome will determine whether Tranche 2 proceeds, impacting the total capital available to complete the Santos Transaction and advance the Mahalo Gas Project toward FID. Investors will also watch for updates on the transaction timeline and conditions. The immediate share price impact of the SPP launch was not clear at the time of publication.

Managing Director Tor McCaul Endorses SPP Launch as Comet Ridge Pursues Full Mahalo Ownership

The Board of Comet Ridge authorised the update, signed by Managing Director Tor McCaul. Both McCaul and Chief Financial Officer Robin Polson are available for investor inquiries regarding the SPP and capital raising via the company’s Brisbane office.

The SPP launch marks a major step in Comet Ridge’s strategy to consolidate full ownership of the Mahalo Gas Project from Santos QNT Pty Ltd. If the SPP, Tranche 2 placement, and General Meeting approvals proceed as planned, Comet Ridge will secure increased capital and 100% ownership of its flagship project, positioning it to advance to FID and contribute to east coast Australian gas supply. The forthcoming weeks leading to the August General Meeting will be closely observed by shareholders.