AUS
NZ
UK
CA
USA
IND
Highlights
- BPH, a leading energy investment company with focus on clean energy and gas , is set to raise funds for further development of its hydrogen and gas projects
- The PEP 11 project at Baleen offshore NSW is focused on a gas and carbon storage project of potential national importance
- The placement participant is also offered attaching option, for which the date of expiry will be 30 September 2024
In a major boost to Australia-based BPH Energy’s hydrogen and PEP 11 gas and carbon storage project, the company has received binding commitments to raise ~ AU$1.2 million via a placement. The funding is being raised for both the hydrogen and offshore Newcastle NSW based project that is viewed as a work of potential national significance by BPH as studies predict a shortage of gas supply in the country’s East coast.
This funding seeks to produce two benefits -- address gas shortages in Australia and help achieve the target of net zero emissions. The PEP11 project is subject to the judicial review application filed in the country’s Federal Court with regard to extension of permit in PEP 11.
There is one attaching option for every single new share subscribed by the placement participant. The option is exercisable at AU$0.03 per share, with expiration date as 30 September 2024.
Two tranches
The AU$1.2 million investment would involve issue of over 66.4 million new fully paid ordinary shares of the company. The issue price is set at AU$0.018 per share, and the arrangement is divided into two tranches as hereunder.
- The issue of Tranche 1, comprising nearly 52.1 million shares, will be pursuant to BPH’s existing placement capacity under the exchange’s Listing Rule 7.1A
- The issue of Tranche 2, comprising over 14.3 million shares, will be subject to the approval of shareholders at the BPH General Meeting expected by the end of next month.
As mentioned earlier, the placement provides attaching options to the participants, and the options are subject to the outcome of the General Meeting next month. Everblu Capital Limited, the Lead Manager for the placement, would receive a cash fee amounting to 6% of the fund raised along with one Broker Option on issuance of every 3 placement shares.
Image: © 2022 Kalkine Media®
Fund utilisation
BPH Energy foresees a very robust cash position to pursue and fund its hydrogen projects, thanks to this latest placement of funds. Out of the ~AU$1.2 million raised, a major chunk of AU$0.65 million will go into investments in Clean Hydrogen Technology, while AU$0.35 million will be used to fund development of oil and gas projects and the remaining AU$0.1 million will be used as working capital that includes costs of the placement.
