Invictus Energy (ASX:IVZ) raises AU$12.7M via oversubscribed SPP - Kalkine Media

Highlights

• Invictus Energy has raised AU$12.7 million upon the completion of a share placement plan (SPP).
• The company has decided to accept AU$2.7 million in SPP oversubscriptions.
• IVZ will be utilising the proceeds for a high-impact exploration and appraisal program in the Cabora Bassa Basin.

Invictus Energy Limited (ASX:IVZ) has posted an update about the fundraising measures being taken to secure capital for its 80%-owned and operated Cabora Bassa Project in Zimbabwe.

The company has successfully raised AU$12.7 million upon the completion of a share purchase plan (SPP). The SPP was closed oversubscribed with valid applications from eligible shareholders.

Considering the immense support from investors, the company has decided to enlarge the SPP size and accept oversubscriptions. On accommodating the additional shares to be issued under the SPP, the number of shares would remain lower than the 30% limit mentioned in the ASX Listing Rules.

Funds to aid Mukuyu-2 appraisal well drilling

The SPP proceeds would be used by the company to fund drilling activities at the Mukuyu-2 appraisal well.

The capital will also be utilised to support the CB23 seismic campaign, which is expected to mature several identified leads to drill-ready prospects. With this campaign, the company is looking forward to unlocking the upside potential of its wider basin master position.

Details of the SPP

IVZ would allot over 106.1 million new fully paid ordinary shares, for a capital raise of AU$12.7 million. The shares will be allotted on 2 June 2023.

Attaching options will be given to all the SPP applicants on a one-for-two basis, with an exercise price of AU$0.20 and expiry of 7 June 2026.

Nearly 53.1 million options will be issued under the SPP. However, approval for the issue of nearly 41.6 million of the attaching options is pursuant to Resolution 6 at the shareholder meeting.

Also, Invictus Energy had raised AU$10 million recently via a private placement, taking the total funds raised to AU$22.7 million.

Stock price performance

The company stock was spotted trading at AU$0.140 on the Australian Securities Exchange (ASX), at the time of writing on 01 June 2023. IVZ share price has jumped by over 5% on the ASX in the past one month.

Invictus Energy has a market capitalisation of over AU$139 million.