BPH Energy (ASX: BPH) Updates on Capital Raise and Clean Hydrogen Stake Developments

Highlights

• BPH raised AUD 566,132 through a placement of listed options.
• BPH exercised 21 options in Clean Hydrogen Technologies for USD 63,000 to fund the development of a hydrogen reactor and new patents.
• Cortical Dynamics was selected for the BASA grant to advance its EEG brain function monitor.

BPH Energy Limited (ASX:BPH), a diversified company with investments in resources and medical technology, has released its quarterly report for the December 2024 quarter. The company has provided an update on a recent capital raise and outlined key activities related to its investee companies during the period.

Capital Raise

On 4 October 2024, a shareholder meeting approved a placement of up to 576,795,250 listed options at AUD 0.03 each, expiring on 29 October 2025. The cash consideration for the placement was AUD 566,132, to be used for working capital and offer costs. Additionally, 28,966,387 attaching options and 16,666,667 broker options were issued in connection with the August 2024 share placement. In November 2024, 1,200,000 shares were issued, followed by 5,000,000 unlisted options to a director in December.

Notable activities by the company’s investees during the December 2024 quarter are as follows:

Update on PEP11 - Advent Energy Limited (BPH 35.8% direct interest)

Advent Energy Limited’s subsidiary, Asset Energy Pty Ltd, is part of the PEP11 Joint Venture with Bounty Oil and Gas NL (ASX:BUY). On 17 January 2025, the National Offshore Petroleum Exploration Authority (NOPTA) notified the Joint Venture that the Joint Authority had rejected applications made on 23 January 2020 and 17 March 2021. The PEP11 permit will remain in force for two months from 17 January 2025. The Joint Venture is considering legal options and seeking advice to review the decisions under the Offshore Petroleum Act.

BPH Exercises 21 Options in Clean Hydrogen Deal

BPH holds a 16.3% direct interest in its investee Clean Hydrogen Technologies, while Advent has an interest of 3.86%. Clean Hydrogen issued 760 share options to BPH and 190 options to Advent Energy. Each option has an exercise price of USD 3,000 and can be exercised immediately. The options are convertible into shares in Clean Hydrogen, expiring 10 years from the issue date. During the quarter, BPH exercised 21 options, paying USD 63,000 in total.

Clean Hydrogen will use the cash proceeds to design, build, and test a hydrogen reactor capable of producing 3.2kg to 15kg of hydrogen per hour. The funds will also support filing at least two new patents in an agreed-upon geography related to the production of hydrogen from proprietary technology.

Cortical Selected for BASA Grant Run

BPH holds a 16.4% direct interest in Cortical Dynamics, an Australia-based medical device neurotechnology company. Cortical is developing BARM™, an innovative EEG (electrical activity) brain function monitor.

Cortical has been chosen for the Biomedical AI Sprints Accelerator (BASA) grant. The program is run by leading innovation centres, including the Advanced Robotics for Manufacturing (ARM) Hub and MTPConnect. Cortical will use data and AI to transform its product range, with a focus on improving the perioperative management of anaesthetic agents.

The share price of BPH was AUD 0.0090, at the time of writing on 24 January 2025.