BPH Energy (ASX: BPH) raising AU$2.25M to fuel hydrocarbon projects and Cortical Dynamics - Kalkine Media

Highlights

• BPH Energy has received binding commitments to raise AU$2.25 million via a share placement at AU$0.033 apiece offer price.
• Confirmed participants include new sophisticated investors such as high net worth, family office and dedicated resource funds.
• The placement comprises one free attaching option for every two shares issued.
• The proceeds will be used to fund hydrocarbon projects and Cortical Dynamics.

BPH Energy Limited (ASX: BPH) has received binding commitments to raise AU$2.25 million through a placement of over 68 million shares at an issue price of AU$0.033 per share.

The placement includes one free attaching option for every two placement shares subscribed for by the participants. The option has an exercisable price of AU$0.03 and scheduled expiry on 30 September 2024.

Funds to aid Cortical Dynamics and hydrocarbon projects

The funds raised through the placement would be used to aid the company’s hydrocarbon projects and support the continued development of Cortical Dynamics.

Of the total, AU$1.75 million will be dedicated to exploration and development of oil and gas investments, AU$0.2 million will be used for working capital including cost of the offer, and the remaining AU$0.3 million will be directed towards funding for Cortical Dynamics.

Details of the placement

The issue price of AU$0.033 apiece represents a 13.2% discount to AU$0.038, BPH’s closing price on Tuesday (6 February 2024), and a discount of 11.9% to the 5-day VWAP of AU$0.0375 apiece, and a discount of 25.9% to the 15-day VWAP of AU$0.0446 per share.

 The company expects to settle the placement by 13 February 2024.

The joint lead managers of the placement are - Oakley Capital Partners Pty Limited, Everblu Capital Corporate Pty Ltd, and 62 Capital Limited. The joint lead managers will receive a cash fee of 5% on funds raised and 8,250,000 BHPOB Broker Options pro-rata to their participation in the capital raise.

David Breeze, Executive Director of BPH, highlighted that the placement will see the introduction of numerous new sophisticated investors including high net worth, family office and dedicated resource funds.

BPH shares traded at AU$0.034 apiece at the time of writing on 9 February 2024.