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Highlights
- BPH Energy raising AU$1.044 million for hydrocarbon projects and Cortical Dynamics investments.
- The placement attracted sophisticated investors, including high-net-worth individuals and resource funds.
- Participants will likely receive options exercisable at AU$0.03 per share, valid for 12 months.
BPH Energy Limited (ASX:BPH) has secured binding commitments to raise AU$1.044 million through a placement, priced at AU$0.018 per share. The funds will be directed towards advancing the company's next phase of hydrocarbon projects and investments in Cortical Dynamics.
The placement has garnered interest from sophisticated investors, including high-net-worth individuals, family offices, and specialised resource funds.
As part of the placement terms, participants will be granted one attaching option for every two new shares subscribed for. These options are exercisable at AU$ 0.03 per share and will be valid for 12 months from the issue date, pending shareholder approval.
Highlighting on the capital raising, BPH’s Executive Director Mr David Breeze said: “We were pleased with the strong support in the Placement and will see the introduction of several new sophisticated investors, including high net worth, family office and resource funds to our register. The funding allows BPH to accelerate the exploration programs to unlock the potential on our gas projects especially with the current gas supply crisis as well as assist the next phase of associate Cortical Dynamic Limited’s expansion.”
Fund Allocation Breakdown
The funds will be allocated as follows:
- AU$0.794 million: For exploration and development of oil & gas investments.
- AU$0.1 million: For working capital, including costs associated with the offer.
- AU$0.15 million: For Cortical Dynamics funding.
New Share Issuance Details
The placement offer price of AU$0.018 per share is an 18.2% discount to BPH’s closing price of AU$0.022 per share on Thursday, 7 August 2024, and a 16.3% discount to the 5-day volume-weighted average price (VWAP) of AU$0.0215 per share. It comprises the issue of 58,028,337 new fully paid ordinary shares.
The issue of the attached options is dependent on shareholder approval at a general meeting slated around 25 September 2024. The company will request approval for 29,014,168 attaching options. The placement is expected to settle around 15 August 2024.
The share price of BPH was AU$0.022 at the time of writing on 12 August 2024.
