Real Energy Corporation Limited (ASX:RLE) has raised $800,000 before costs via a placement made to sophisticated and institutional investors in Australia. The placement comprised of 40,000,000 shares at a $ 0.02 per share, together with half an option for each share subscribed. Each option will be unquoted and exercisable into one share at an exercise price of $ 0.04 (up until 30 September 2022).
Besides, the Company launched a Share Purchase Plan (SPP) for eligible shareholders or securities holders with the opportunity to increase their shareholding. Real Energy intends to raise $ 200,000 under the SPP and has released its SPP booklet.
Under the SPP, the Company is giving the opportunity to purchase up to $ 30,000 worth of fully paid ordinary shares in Real Energy (New Shares), regardless of the size of their shareholding, without any transaction costs or brokerage.
Funds raised are planned to support the Venus Pilot drilling. The setup is planned to commence in October 2020 and the subsequent flow testing may continue into early 2021.
RLE was trading up by 4.16% at $ 0.025 on 21 September 2020 (12:25 PM AEST).